A surplus on your cash-flow statement indicates that you are
A)using savings to pay current expenses.
B)managing your financial resources successfully.
C)borrowing money to pay current expenses.
D)both using savings to pay current expenses and borrowing money to pay current expenses.

Question

Quizplus · Accepted Answer

A surplus on the cash-flow statement means that your cash inflow is greater than your cash outflow, indicating that you have managed your financial resources successfully. It means you have enough money left over to save or invest for future needs. Option A and C both indicate negative cash flow situations, which is not the case when there is a surplus.

A Surplus on Your Cash-Flow Statement Indicates That You Are