Which of the Following Is Not True About Net Operating

question 159

Multiple Choice

Which of the following is not true about net operating cash flow?

• A) It is the difference between cash receipts and cash disbursements from providing goods and services.
• B) It is a measure used in accrual accounting and is recognized as the best predictor of future operating cash flows.
• C) Over short periods, it may not be indicative of long-run cash-generating ability.
• D) It is easy to understand and all information required to measure it is factual.

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Definitions:

Stadium Capacity

The maximum number of spectators that a sports venue can accommodate during an event.

Supply of Seats

Refers to the number of seats available, often in context to theaters, vehicles, or other venues where seating is limited.

Ticket Prices

The cost assigned for admission to an event, such as a movie, concert, or sports event.

Perfectly Inelastic

A market situation where the quantity demanded or supplied is completely unresponsive to changes in price.