Monica noted that she disbursed $6,347 in payments for operations in her travel agency and received $6,189 in cash receipts for services rendered. She had no cash receipts or disbursements from investments or financing activities. Thus, Monica had a:
A) positive disbursement.
B) negative cash flow.
C) bad debt allowance.
D) tax credit payment.

Question

Quizplus · Accepted Answer

Monica's cash inflow ($6,189) is less than her cash outflow ($6,347), resulting in a negative cash flow. This means that she has a net loss in cash for the period.

Monica Noted That She Disbursed $6,347 in Payments for Operations