Increased earnings
A)are reflected as an increase in cash flow.
B)do not always generate an increase in cash flow.
C)result in a decrease in cash flow only if dividends are paid.
D)are the starting point for the direct method cash flow statement.
E)include none of the above.

Question

Quizplus · Accepted Answer

Increased earnings do not always generate an increase in cash flow as other factors such as changes in working capital or investments may impact cash flow.

Increased Earnings