All of the Following Statements Are True, Except

question 55

Multiple Choice

All of the following statements are true, except:

• A)To analyze operations properly you need both the income statement and the cash flow statement.
• B)In the long run total profits and net cash flows will be very similar.
• C)The cash flow statement considers events that the income statement does not.
• D)The cash flow statement and the income statement both cover the period of a year because profits and cash flows are very similar over the period of a year.

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Definitions:

Free Trade

An economic policy that allows imports and exports between countries with minimal or no tariffs, quotas, or other restrictions.

World Price

The worldwide cost of a product or service, set by the conditions of international supply and demand.

Domestic Price

The price of goods or services within a particular country, unaffected by international market variables.

Oil Barrels

Standardized units measuring volumes of crude oil and its products, with one barrel equivalent to 42 U.S. gallons.