Which of the Following Statements Is MOST Correct Concerning the Relationship

question 65

Multiple Choice

Which of the following statements is MOST correct concerning the relationship between a company's cash budget and its income statement?

• A) If net income is positive for 3 or more months in a row, then cash flow must be positive.
• B) If net income is positive, then cash flow must be positive.
• C) If net income is positive, then cash flow could be positive or negative, but if net income is negative, cash flow must also be negative.
• D) Cash flow could be positive whether net income is positive or negative.

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Definitions:

Demand Curve

A Demand Curve illustrates how the quantity demanded of a good or service varies with its price, typically showing an inverse relationship.

Quantity Demanded

The overall volume of a product or service that individuals are inclined and financially able to acquire at a determined price.

Decrease

A reduction in amount, size, strength, or frequency.

Market Demand Curve

A graphical representation that shows the relationship between the price of a good and the total amount of the good that all consumers are willing to purchase at each price level.