Which of the following statements is not true?
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 doesn't 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, but instead measures the amount of cash coming in and out of a company. Profitability is measured by net income, which takes into account all the revenue and expenses recorded in the income statement. Additionally, statement of cash flows is not the only financial statement that reports business activities, as both the income statement and balance sheet also provide information about a company's financial activities.

Which of the Following Statements Is Not True