When the income and expense statement indicates a cash surplus,this may be used to increase net worth by increasing assets or decreasing liabilities.

Question

Quizplus · Accepted Answer

If there is a cash surplus, the excess cash can be used to pay off debts or invest in assets, which can in turn increase net worth. Therefore, it is true that a cash surplus can be used to increase net worth.

When the Income and Expense Statement Indicates a Cash Surplus,this