All of the following statements are true, except:
A)To analyze operations properly you need both the income statement and the cash flow statement.
B)In the long run total profits and net cash flows will be very similar.
C)The cash flow statement considers events that the income statement does not.
D)The cash flow statement and the income statement both cover the period of a year because profits and cash flows are very similar over the period of a year.

Question

Quizplus · Accepted Answer

The statement in option B is not entirely true as there can be differences between total profits and net cash flows in the long run due to factors such as non-cash expenses, changes in working capital, and investments in fixed assets.

All of the Following Statements Are True, Except