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:

Receiver

In communication, the individual or entity that interprets and potentially responds to a message sent by a sender.

Instigator

A person who initiates or provokes a certain action or event.

Self-esteem

An individual's subjective evaluation of their own worth or value.

SBAR

An acronym for Situation, Background, Assessment, Recommendation; a communication protocol used in healthcare to facilitate prompt and appropriate communication.