A cash surplus on an income and expense statement prepared on a cash basis indicates that:
A) the net worth is equal to zero.
B) investments are less than the cash balance.
C) the payments on debts are not met.
D) total expenses are less than total income .
E) income and expenses are equal.

Question

Quizplus · Accepted Answer

A cash surplus means that there is more cash inflow than outflow, indicating that total expenses are less than total income.

A Cash Surplus on an Income and Expense Statement Prepared