Which of the Following Statements Is Most Correct Concerning the Relationship

question 95

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:

Discovery

The legal process by which parties in a lawsuit obtain information and evidence from each other to prepare for trial.

Interrogatories

Written questions from one party to a lawsuit to another, which must be answered formally.

Pleadings

Written documents filed with a court by parties in a legal dispute, outlining their claims, defenses, or other assertions.

Legal Rules Of Evidence

Guidelines governing the admissibility, relevance, and sufficiency of evidence in legal proceedings.