Which of the Following Statements About the Statement of Cash

question 79

Multiple Choice

Which of the following statements about the statement of cash flows is not correct?

• 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 does not 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:

Communication Skills

The ability to effectively convey, receive, and interpret messages, both verbally and non-verbally, between people.

Business Organizations

Structured entities built to conduct commercial activities or provide goods and services, operating under a defined set of rules and regulations.

Associative Learning

A learning process in which a connection is made between two stimuli or a stimulus and a response, foundational to behavioral psychology.

Events

Occurrences or happenings that are noteworthy or significant, often marked by certain ceremonies or activities.