Why Would You Put a Negative Sign in Many Financial

question 3

Multiple Choice

Why would you put a negative sign in many financial functions?

• A)Excel requires a negative interest rate.
• B)Excel interprets these calculations as a negative cash flow (money leaving your account).
• C)Excel uses negatives for all financial functions.
• D)Excel doesn't differentiate between income and outflow.

---

Definitions:

Credit Account Balance

A credit account balance refers to the total amount of credit available in a person's or organization's account, after considering all debits and credits.

Adjusting Entries

Documentation in financial records at the termination of an accounting period to allocate gains and expenses to the correct timeframe.

Trial Balance

A financial spreadsheet where all ledger balances are gathered into columns for debits and credits, ensuring both totals match.

Debit Column

The left-hand side of a ledger account, recording increases in assets and expenses, and decreases in liabilities, equity, and revenue.