What is the net cash flow if total income last month was $2,000,but expenses totaled $2,500,and the shortage was covered on a credit card?
A) -$500
B) $500
C) $2,500
D) $4,500

Question

Quizplus · Accepted Answer

The net cash flow is the difference between the total income and total expenses. In this case, the total income was $2,000 and the total expenses were $2,500, resulting in a shortage of $500. Since the shortage was covered on a credit card, it does not count as cash flow. Therefore, the net cash flow is negative $500.

What Is the Net Cash Flow If Total Income Last