Practicing Success
Practicing Success
CUET Preparation Today
| While preparing a cash flow statement, if net cash flow from operating, investing and financing activities are negative, the same is .......... from opening cash balance to obtain ....... cash balance. |
Added, closing Deducted, opening Deducted, closing Added , deducted |
| Deducted, closing |
| If the net cash flow from operating, investing, and financing activities is negative, it means that more cash has gone out than has come in. This negative net cash flow needs to be deducted from the opening cash balance to obtain the closing cash balance. This reflects a decrease in cash availability, which is why it is deducted from the initial cash balance to find the final cash balance. |
