which of the following is true?\na. net cash flow - cash outflow = cash inflow\nb. net cash flow + cash…
which of the following is true?\na. net cash flow - cash outflow = cash inflow\nb. net cash flow + cash outflow = cash inflow\nc. net cash flow + cash inflow = cash outflow\nd. cash inflow + cash outflow = net cash flow\n\nplease select the best answer from the choices provided\n\na\nb\nc\nd
Answer
Explanation:
Step1: Recall net cash flow formula
Net cash flow is calculated as ( \text{net cash flow} = \text{cash inflow} - \text{cash outflow} ).
Step2: Rearrange the formula
Rearranging the formula ( \text{net cash flow} = \text{cash inflow} - \text{cash outflow} ) to solve for cash inflow gives ( \text{cash inflow} = \text{net cash flow} + \text{cash outflow} ), which matches option b.
Step3: Check other options
- Option a: Rearranging ( \text{net cash flow} - \text{cash outflow} = \text{cash inflow} ) would imply ( \text{net cash flow} = \text{cash inflow} + \text{cash outflow} ), which is incorrect.
- Option c: Rearranging ( \text{net cash flow} + \text{cash inflow} = \text{cash outflow} ) implies ( \text{cash outflow} - \text{cash inflow} = \text{net cash flow} ), which is incorrect (should be inflow - outflow).
- Option d: ( \text{cash inflow} + \text{cash outflow} = \text{net cash flow} ) is incorrect as net cash flow is inflow minus outflow.
Answer:
B. net cash flow + cash outflow = cash inflow