Which of the following statements is true of a cash flow break-even analysis?

Question

Quizplus · Accepted Answer

A cash flow break-even analysis helps in understanding the cash requirements of a business and in estimating how much financing a new business will require. Option B is incorrect because the cash flow break-even point calculation focuses on the computation of cash flow break-even, not EAT break-even. Option C is incorrect because cash flow statements summarize the cash flows into and out of a firm, not a cash flow break-even analysis. Option D is also incorrect because although a cash flow statement helps in understanding where the money is coming from and where it is going, it is not the main function of a cash flow break-even analysis.

Which of the Following Statements Is True of a Cash