Receipts minus disbursements = the money you take in minus the money that you spend = ________.

Question

Quizplus · Accepted Answer

Cash flow is the amount of money that is coming in and going out of a business. By taking the receipts and subtracting the disbursements, you are calculating the cash flow of the business. Profit is the amount of money that is made after all expenses are subtracted from revenue, so it is not the correct answer. Revenue is the total amount of money earned by a business, but it does not take into account the money spent, so it is not the correct answer. Gross profit is the revenue minus the cost of goods sold, so it is not the correct answer. COGS (cost of goods sold) is the cost of producing or purchasing the products that are sold by a business, so it is not the correct answer in this case.

Receipts Minus Disbursements = the Money You Take in Minus