Which of the following statements about the statement of cash flows is not correct?
A) The statement of cash flows can be used to assess the likelihood of a company paying dividends.
B) Net cash flow is the best measure of profitability since it does not rely on estimates.
C) A company can have positive net income but at the same time have negative cash flow.
D) The statement of cash flows is the only financial statement that reports business activities.

Question

Quizplus · Accepted Answer

Net cash flow is not a measure of profitability, it is a measure of the cash inflows and outflows of a company over a specific time period. Profitability is measured by the income statement.

Which of the Following Statements About the Statement of Cash