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:

Ozone

A molecule composed of three oxygen atoms, known for its protective layer in the Earth's stratosphere against harmful ultraviolet radiation.

Acid Rain

Precipitation whose acidity destroys forests and the ecosystems of lakes. It is formed by sulfur dioxide and other gases emitted by coal-burning power plants, pulp and paper mills, and motor-vehicle exhaust.

Precipitation

Any form of water, such as rain, snow, sleet, or hail, that falls from the atmosphere to the Earth's surface.

Genetic Pollution

The uncontrolled spread of genetic information, often as a result of human activities, leading to unwanted alterations in populations or species.