If a firm is currently profitable,then:
A)its current cash inflows must exceed its current cash outflows.
B)its reported sales exceed its costs.
C)its cash flows are known with certainty.
D)it will always have sufficient cash to pay its bills in a timely manner.
E)the timing of the related cash flows is irrelevant.

Question

Quizplus · Accepted Answer

Profitability is determined by whether a firm's reported sales exceed its costs, not necessarily by its current cash flow situation.

If a Firm Is Currently Profitable,then