Which of the statements below is FALSE?
A)A company could show a loss for the operating period but have generated positive cash flow for the business.
B)Profits are an accounting measure of performance during a specific period of time.
C)To obtain the operating cash flow,given the net income,we add back depreciation and subtract taxes.
D)Cash flow is an accounting measure of performance during a specific period of time.

Question

Quizplus · Accepted Answer

Cash flow is not an accounting measure of performance during a specific period of time, but rather a measure of the cash that is flowing in and out of the business during that period of time. It is a measure of the business's liquidity and is often used as an indicator of the business's ability to pay its bills and cover its expenses.

Which of the Statements Below Is FALSE