Which of the Following Statements Is Not True Relating to Cash

question 51

Multiple Choice

Which of the following statements is not true relating to cash flow analysis?

• A)Cash return on assets indicates the amount of operating cash flow generated for each dollar invested in assets.
• B)To maximize cash flow from operations,a company strives to increase both cash flow per dollar of sales and sales per dollar of assets invested.
• C)Cash return on assets can be separated to examine two important business strategies: cash flow to sales and asset turnover.
• D)Positive cash flow from operations is not important to a company's survival in the long-run.