which of the following is true? a. net cash flow - cash outflow = cash inflow b. net cash flow + cash…

which of the following is true? a. net cash flow - cash outflow = cash inflow b. net cash flow + cash outflow = cash inflow c. net cash flow + cash outflow = cash inflow d. cash inflow + cash inflow = cash outflow cash inflow + cash outflow = net cash flow please select the best answer from the choices provided

which of the following is true? a. net cash flow - cash outflow = cash inflow b. net cash flow + cash outflow = cash inflow c. net cash flow + cash outflow = cash inflow d. cash inflow + cash inflow = cash outflow cash inflow + cash outflow = net cash flow please select the best answer from the choices provided

Answer

Explanation:

Step1: Recall cash - flow formula

Net cash flow is calculated as cash inflow minus cash outflow, i.e., $Net\ cash\ flow=Cash\ inflow - Cash\ outflow$.

Step2: Rearrange the formula

By adding cash outflow to both sides of the equation $Net\ cash\ flow=Cash\ inflow - Cash\ outflow$, we get $Net\ cash\ flow+Cash\ outflow = Cash\ inflow$.

Answer:

B. net cash flow + cash outflow = cash inflow