Carlos and Keisha have a monthly income of $25,000. They have monthly expenditures that total $30,000. What is TRUE about their cash flow?


A. They have a $5,000 surplus.

B. They have a $5,000 deficit.

C. They have a positive cash flow.

D. They have extra money that they could use for investments.


THE CORRECT ANSWER IS B. THEY HAVE A $5,000 DEFICIT.
i got it right on the test, i hope this helps :))

Answer:

B. They have a $5,000 deficit

Explanation:

The relationship between Income and Expenditure is that Income less expenditure gives us the Profit for the business. Therefore, Income ($25,000) less Expenditure ($30,000) gives a deficit of $5000.

Answer: They have a $5,000 deficit.

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Ilus
What are the gross sales?
Income Statement
For the Year Ended August 31, 2012
Revenues
Student Lessons
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Recital Sales
15,900.00
Total Revenues:
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Expenses
Costumes and Accessories
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11,320.00
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