All of the Following Are Advantages of an Increasing Cash

question 40

Multiple Choice

All of the following are advantages of an increasing cash flow from operations except:

• A)A company is likely to pay its current bills with cash from operations not earnings.
• B)A company with cash is in a better position to fund growth.
• C)Large cash flows eliminate the need for borrowing.
• D)Earnings are viewed better if cash flows from operations closely match net income.

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