Web Analytics
Alvaro420
Answered

Which of the following is true?

a.

net cash flow - cash outflow = cash inflow

b.

net cash flow + cash outflow = cash inflow

c.

net cash flow + cash inflow = cash outflow

d.

cash inflow + cash outflow = net cash flow

Verified Answer :

CecilXCarlos


net cash flow + cash outflow = cash inflow (just had this on a test)

Answer: The answer is (b) net cash flow + cash outflow = cash inflow.


Step-by-step explanation: A company's net cash flow is defined as the difference between the cash inflow and cash outflow. This statement is also known as cash flow statement.

So, we can write

net cash flow = cash inflow - cash outflow

i.e., net cash flow + cash outflow = cash inflow.

Thus, the correct option is (b).


Related Questions