Which of the Following Statements Is Not True Relating to Cash

question 44

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.

---

Definitions:

Counterclaim

A claim made to offset another claim in a legal action, essentially a defendant’s claim against the plaintiff.

Examination for Discovery

A pre-trial process where parties in a lawsuit have the opportunity to question each other or witnesses under oath.

Balance of Probabilities

The standard of proof in most civil cases, requiring that a party's case is more likely true than not.

Statement of Claim

A legal document filed in court that outlines the plaintiff's allegations against the defendant and the legal basis for the lawsuit.