Why would you put a negative sign in many financial functions?
A)Excel requires a negative interest rate.
B)Excel interprets these calculations as a negative cash flow (money leaving your account).
C)Excel uses negatives for all financial functions.
D)Excel doesn't differentiate between income and outflow.

Question

Quizplus · Accepted Answer

In finance, negative cash flows indicate money leaving an account or a negative return. Excel interprets these calculations as a negative cash flow, which is why a negative sign is necessary in many financial functions.

Why Would You Put a Negative Sign in Many Financial