If a company's receipts exceed its disbursements, what can be concluded about its cash flow?

When a company's receipts exceed its disbursements, it indicates that the company is receiving more cash than it is spending over a specific period. This situation leads to a positive cash flow, which reflects financial health and the ability to cover expenses, reinvest in the business, pay off debts, and provide returns to shareholders. Positive cash flow is a critical measure for businesses, as it can enhance liquidity, facilitate growth initiatives, and improve overall business sustainability.

The other options do not accurately represent the situation where receipts exceed disbursements. Negative cash flow would suggest that disbursements are greater than receipts, which is not the case here. Claiming there is no cash flow would be misleading, as cash flow exists, and it is positive in this context. Lastly, stating that the cash flow is stable does not inherently convey the necessary information about the cash flow's positivity, as stability can exist in both positive and negative scenarios. Thus, the conclusion drawn from receipts surpassing disbursements is definitively that the company is experiencing a positive cash flow.