A Surplus on Your Cash-Flow Statement Indicates That You Are

question 37

Multiple Choice

A surplus on your cash-flow statement indicates that you are

• A)using savings to pay current expenses.
• B)managing your financial resources successfully.
• C)borrowing money to pay current expenses.
• D)both using savings to pay current expenses and borrowing money to pay current expenses.

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Definitions:

Legal

Pertaining to laws or the practice of law; conforming to the law or based upon the law.

Binding Obligation

A legal or contractual requirement that obligates one party to perform specific actions or face legal penalties.

Shareholders' Equity

The residual interest in the assets of an entity after deducting liabilities, representing the net worth contributed by the owners.

Liabilities

Financial obligations or debts owed by a company to external parties, creditors, or suppliers that must be settled over time.