Is It Possible for a Firm to Have Positive Net

question 91

Multiple Choice

Is it possible for a firm to have positive net income and yet to have cash flow problems?

• A) No, this is impossible since net income increases the firm's cash.
• B) Yes, this can occur when a firm is growing very rapidly.
• C) Yes, this is possible if the firm window-dressed its financial statements.
• D) No, this is impossible since net income and cash are highly correlated.

---

Definitions:

Civil Rights Movement

A historic social and political movement in the United States, aiming at gaining equal rights and eliminating racial discrimination against African Americans, prominently during the 1950s and 1960s.

Psychological Principles

Fundamental concepts or assumptions in psychology that guide psychologists' understanding of human behavior and mental processes.

Highly Subjective

Pertaining to or influenced by personal feelings, tastes, or opinions to a great extent.

Cultural Heritage

The legacy of physical artifacts and intangible attributes of a group or society passed from generation to generation.