The cash flow cycle:
A)describes the flow of cash through a company.
B)illustrates that profits and cash flows are the same.
C)reminds a financial manager that profits are important.
D)focuses on financing activities only.

Question

Quizplus · Accepted Answer

The cash flow cycle is a representation of how cash flows in and out of a company, including its operations, investments, and financing activities. It is therefore the best choice among the options given as it accurately describes the flow of cash through a company.

The Cash Flow Cycle