Negative operating cash flow may indicate all of the following except:
A)the company may not be able to replace property,plant and equipment.
B)stockholders may not receive a dividend.
C)the company may be in the introductory phase of its life cycle.
D)The company did not earn a profit from its core business activity.

Question

Quizplus · Accepted Answer

Negative operating cash flow does not necessarily mean the company did not earn a profit from its core business activity, as it could be due to other factors like changes in working capital or investment in growth.

Negative Operating Cash Flow May Indicate All of the Following