This textbook is available Logo
New Perspectives Microsoft Office 365 & Excel 2019 Comprehensive 1st Edition

New Perspectives Microsoft Office 365 & Excel 2019 Comprehensive (1st Edition)

Book Edition1st Edition
Author(s)Carey, Parsons
SubjectComputer Science
Section 9.1: Session 9.1 Visual Overview: Loan and Investment Functions
Section 9.2: Session 9.2 Visual Overview: Income Statements and Depreciation
Section 9.3: Session 9.3 Visual Overview:NPV and IRR Functions and Auditing
Chapter 9, Section 9.1, Quick Check , Exercise 1
Page EX 9-19

Explain the difference between positive and negative cash flow. If you borrow $20,000 from a bank, is that a positive or negative cash flow? Explain your answer.


Cash flow is the cash that comes in and leaves an organization. It is the production of income and the installment of costs. Money inflows result from either the generation of income through the selling of products and enterprises, cash acquired, or cash gained through speculations. 

If more money is expanding into the company than leaving the company, then positive cash flow is experienced. But if more cash is going away from the company than coming into the company, then the negative cash flow is experienced.

Verified Answer

Positive cash flow is termed as the money flowing that is flowing to the user. Negative cash flow is termed as the money that is flowing away from the user.

It is positive cash flow as the money is flowing to the user.

How would you rate this answer and explanation?
Did you like this example?
Subscribe for full access
Page EX 9-19