Which of the Following Factors Does Not Provide the Rationale

question 24

Multiple Choice

Which of the following factors does not provide the rationale for the provision of cash flow information?

• A)a positive cash flow is essential for an entity's financial viability and survival
• B)accrual- based profit always equals cash flow
• C)most financial statement users have an interest in cash flow in terms of the cash returns they can expect from their investments
• D)accrual- based profit does not necessarily equal cash flow

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Definitions:

Quota

A regulatory limit on the quantity or value of a particular product that can be traded or produced.

Price Floor

A government or group-imposed price control that sets the minimum price at which a product can be sold.

Excess Supply

A situation in the market where the quantity supplied of a good exceeds the quantity demanded, often leading to a decrease in price.

Quantity Supplied

The amount of a good or service that producers are willing to sell at a given price.