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.

Hello, Thanks for your questions. Here are the answers: Q1: 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. Q2: 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. Best, Ned

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Jackson Liew

Last answered:

02 Jan 2021

Posted on:

28 Dec 2020

Excel: Why adding negative into the cell?

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Ned Krastev

Instructor

Posted on:

02 Jan 2021

Excel: Why adding negative into the cell?

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