In order to distinguish between inflows and outflows,different colours are assigned to each of these cash flows when constructing a timeline.

Question

Quizplus · Accepted Answer

When constructing a timeline for cash flows, different colors are not a requirement; the distinction is usually made by the direction of the arrows (inflows are typically represented by arrows pointing upwards or towards the timeline, and outflows by arrows pointing downwards or away from the timeline) or by using positive and negative signs.

In Order to Distinguish Between Inflows and Outflows,different Colours Are