In cash flow calculations,cash flow sign convention requires us to
A) assign a positive sign in front of cash inflows and a negative sign in front of cash outflows.
B) assign a negative sign in front of cash inflows and a positive sign in front of cash outflows.
C) assign a positive sign in front of both cash inflows and cash outflows.
D) assign no signs. None of the cash flows need signs assigned to them.

Question

Quizplus · Accepted Answer

Cash flow sign convention requires us to assign a positive sign in front of cash inflows (i.e., money coming into the business) and a negative sign in front of cash outflows (i.e., money leaving the business). This helps us accurately calculate the net cash flow and determine the financial health of the business.

In Cash Flow Calculations,cash Flow Sign Convention Requires Us to