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Which of the Following Is True of a Cash Flow

Question 75

Multiple Choice

Which of the following is true of a cash flow?


A) Profits do not necessarily result in cash flows available to the stockholders.
B) It is guaranteed that the board of directors will increase dividends when net cash flows increase.
C) A firm's income statement will never show a positive profit when its cash outflows exceed its cash inflows.
D) An increase in revenue will always result in an increase in cash flow.

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