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A business would have a positive cash flow if revenue is _____ operating expenses.

A. equal to
B. less than
C. greater than
D. none of the above

User Sanket
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Final answer:

A business would have a positive cash flow if revenue is greater than operating expenses. The correct option is C. greater than

Step-by-step explanation:

In order for a business to have a positive cash flow, the revenue must be greater than the operating expenses.

Cash flow is the net amount of cash and cash equivalents flowing in and out of a business during a specific period of time. Revenue represents the total income generated by the business through its sales or services.

Operating expenses, on the other hand, are the costs incurred by the business to operate on a day-to-day basis, such as rent, utilities, wages, and supplies.

When revenue is greater than operating expenses, it means that the business is generating enough income to cover its expenses and have money left over.

This positive cash flow allows the business to invest in growth, pay off debts, and distribute profits to shareholders. The correct option is C. greater than

User Ralph Callaway
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