Question

Giorgio provides sales training to businesses. In 2018, Giorgio purchased a sound system for $100,000 and received $75,000 from clients. Giorgio would record $25,000 as `_____`.

Answer 1

Considering the situation described above and the accounting principle, Giorgio would record $25,000 as "Negative Cash Flow."

What is Negative Cash Flow?

Negative Cash Flow is the term used to describe the excess amount spent by individuals or firms compared to the money made during a particular period.

Negative Cash Flow usually occurs when the expenses are more than revenue. The excess expenses that the revenue did not cover would be recorded as the Negative Cash Flow.

Hence, in this case, it is concluded that the correct answer is "Negative Cash Flow."

Learn more about the Negative Cash Flow here: https://brainly.com/question/3507431