Question: True or False. Explain your answers and/or give examples. If a company earned sales revenue of $10,000, that must mean there was a positive cash
True or False. Explain your answers and/or give examples.
If a company earned sales revenue of $10,000, that must mean there was a positive cash flow (aka. increase in its cash balance) of $10,000 due to cash received from customers.
If a company incurred rent expense of $3,000, that must mean there was a negative cash flow (aka. decrease in its cash balance) of $3,000 due to cash paid for rent.
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