A profitable company does not necessarily have positive cash flows.

Name: A profitable company does not necessarily have positive cash flows.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A profitable company may have positive net income and profits, but that does not necessarily mean that they are getting cash inflows. Cash flows depend on various factors like sales, inventory, receivables, and payables, which may not directly impact profits. Therefore, a company can be profitable but not have positive cash flows.

A Profitable Company Does Not Necessarily Have Positive Cash Flows