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3 January, 23:05

Net cash flow from a transaction equals the difference between cash received and cash disbursed in the transaction.

A. True

B. False

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Answers (1)
  1. 3 January, 23:30
    0
    True

    Explanation:

    Imagine you're selling lemonade. It costs you $2 for a lemon, and you can make 5 glasses from it.

    You sell each glass for $1.

    At the end of the day, your profit per lemon = the total value of lemonade sold - the total cost of lemons. If you only sell 1 lemon worth of lemonade, it will be $5-$2 = $3 profit.

    Net cash flow means the same as "profit".
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