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)the total expense is less than the total income.
E)income and expense are equal.

Question

Quizplus · Accepted Answer

A cash surplus on an income and expense statement prepared on a cash basis indicates that the total income exceeds the total expenses, leading to a surplus.

A Cash Surplus on an Income and Expense Statement Prepared