Which of the Following Statements About the Statement of Cash

question 65

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 affecting cash.

---

Definitions:

Data Type

The characteristic of a variable or data element that determines what kind of value it can hold, such as integer, real, boolean, or string.

Input Mask

A method to enforce the format of the input by setting predefined criteria, ensuring data is entered in a specific format.

Compacting Database

The process of reorganizing a database to reclaim unused space and optimize performance.

Save Database

The action of writing changes or updates to a database file on disk, ensuring that all modifications are permanently stored.