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.

---

Definitions:

Liquor Sales

The commercial activity of selling alcoholic beverages, including spirits, wines, and beers.

Smoothing Constant

A parameter used in exponential smoothing techniques that determines the weight given to the most recent observation in forecasting.

Exponential Smoothing

A forecasting technique that applies weighted averages of past observations, giving more weight to more recent observations to smooth data.

Liquor Sales

The commercial activity of selling alcoholic beverages, which can include processes such as licensing, distribution, and retailing.