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:

Equal Protection Clause

A provision in the Fourteenth Amendment to the U.S. Constitution prohibiting states from denying any person within its jurisdiction the equal protection of the laws.

Emancipation Proclamation

An executive order issued by President Abraham Lincoln in 1863 that declared the freedom of all slaves in Confederate-held territory during the American Civil War.

Abraham Lincoln

A 16th President of the United States who led the country through its Civil War and helped to abolish slavery.

Slavery

A system in which individuals are owned by others, deprived of personal freedom, and forced to perform labor or services.