In Cash Flow Calculations,cash Flow Sign Convention Requires Us to

question 36

Multiple Choice

In cash flow calculations,cash flow sign convention requires us to

• A) assign a positive sign in front of cash inflows and a negative sign in front of cash outflows.
• B) assign a negative sign in front of cash inflows and a positive sign in front of cash outflows.
• C) assign a positive sign in front of both cash inflows and cash outflows.
• D) assign no signs. None of the cash flows need signs assigned to them.

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Definitions:

E-commerce

The buying and selling of goods and services using the internet, and the transfer of money and data to execute these transactions.

Subsidiary Ledger

A detailed ledger containing account information that supports the summary amounts recorded in a general ledger.

General Journal

A primary accounting record where financial transactions are entered before being posted to ledger accounts.

Accounts Receivable

Represents money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.