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Which of the following statements about the differences between cash flows and earnings is FALSE? a. A firm could report positive earnings even with negative
Which of the following statements about the differences between cash flows and earnings is FALSE?
| a. | A firm could report positive earnings even with negative cash flows. | |
| b. | A firm could report negative earnings even with positive cash flows. | |
| c. | ROIC is an earnings-based measure of returns, while NPV and IRR are cash flow-based measures. | |
| d. | A positive net income means that the firm has profits available to distribute to shareholders. | |
| e. | The differences between cash flows and earnings are driven by accrual accounting. |
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