Which of the Following Statements Is Not True

question 32

Multiple Choice

Which of the following statements is not true?

• A)The statement of cash flows can be used to assess the likelihood of a company paying dividends.
• B)Net cash flow is the best measure of profitability since it doesn't rely on estimates.
• C)A company can have positive net income but at the same time have negative cash flow.
• D)The statement of cash flows is the only financial statement that reports business activities.

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Definitions:

Money Supply

The entirety of financial assets at a specific point in time within an economy, including the total of cash, coins, and balances in savings and checking accounts.

Interest Rate

The fee a lender imposes on a borrower for utilizing assets, denoted as a portion of the primary sum.

Aggregate Demand

represents the total demand for all goods and services in an economy at a given time and price level.

Short-Run Aggregate Supply

Represents the total output of goods and services produced in an economy at different price levels over a short period, during which some factors of production are fixed.