🛠️ Scheduled Maintenance | We’ll be undergoing scheduled maintenance and upgrades between 00:00 PST Jan 26th until 00:00 PST Jan 28th. There may be brief interruption of services in that period. We apologize for the inconvenience.

The 365 Data Science team is proud to invite you to our own community forum. A very well built system to support your queries, questions and give the chance to show your knowledge and help others in their path of becoming Data Science specialists.
Anybody can ask a question
Anybody can answer
The best answers are voted up and moderated by our team

Excel: Why adding negative into the cell?

Excel: Why adding negative into the cell?

Super Learner

Why do we need to add negative into the cell to negate the values?
Wouldn’t it be better if we know whether the amount is negative/positive to determine positive/negative cash flow?

And in the end, why do we need to remove negative for the net income? I understand it’s for validation. But, Can you provide me with a better intuition of doing so?
FYI, I didn’t learn about accounting.

1 Answer

365 Team

Thanks for your questions.
Here are the answers:
We negate because we want to see revenues as positive numbers and costs as negative. Revenues are a source of income and costs are an expense. So, it makes sense to have positive revenues and negative costs.
In the end, we want to make a check and verify whether the number we obtained minus Net income, which was reported in the data gives 0. This is why we negate. That’s simply a check.
Hope it makes sense. 

Hi Ned, thanks for the reply. I understand for Q1. But for Q2, it’s not for the validation part, instead, the part I mentioned is net income part where you need to remove the negation(right before the final validation of the net income). Hope it makes clear for you.

3 weeks