If your statement of income and expense prepared on a cash basis shows a deficit, you have:
A) increased your debts.
B) liquidated your investments.
C) increased your savings.
D) taken a cash loan on your insurance.
E) sold some securities.

Question

Quizplus · Accepted Answer

A deficit on a cash basis statement of income and expense means that you have spent more money than you have earned. To cover the deficit, you may need to take out loans or increase your debts.

If Your Statement of Income and Expense Prepared on a Cash