If a company's receipts exceed its disbursements, does it have a negative cash flow?

When a company's receipts exceed its disbursements, it indicates that the company is bringing in more money than it is spending during a specific period. This situation results in a positive cash flow rather than a negative cash flow. A positive cash flow reflects the company's ability to generate surplus cash, which can be utilized for investments, savings, or paying down debts.

In contrast, negative cash flow occurs when disbursements exceed receipts, leading to a potential liquidity problem. The assessment of cash flow is crucial for understanding the financial health of a business, and having a positive cash flow is generally a favorable indicator.

Options discussing context or suggesting that it could be true would not be accurate in this scenario, as the fundamental financial principle clearly shows that exceeding receipts over disbursements directly correlates to a positive cash flow.