Which of the Following Statements Is True

question 84

Multiple Choice

Which of the following statements is true?

• A)If a company reports net income on its income statement,it should report an increase in cash on its statement of cash flows.
• B)If a company reports a net loss on its income statement,it should report a decrease in cash on its statement of cash flows.
• C)If a company uses the accrual basis of accounting,it will improve its cash position if it reports net income for the same period.
• D)If a company uses the accrual basis of accounting,its cash balance can increase even if it reports a net loss.

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Definitions:

Disenchanted

Feeling a loss of belief or disillusionment, especially with something one once regarded positively.

Americans

Americans generally refer to individuals who are citizens or residents of the United States of America, belonging to a diverse society comprised of various cultural, ethnic, and racial backgrounds.

Sharply Intensified

Dramatically increased in degree, severity, or intensity.

Medieval Europe

A historical period in Europe lasting from the 5th to the late 15th century, characterized by feudalism, the manorial system, and the dominance of the Catholic Church.