Which of the following statements must be true for a company that uses the accrual basis of accounting?

Multiple Choice

• A net loss will result in net cash outflows from operating activities.

• If net income increasing from one period to the next, cash inflows will also increase.

• Increasing net sales will result in net cash inflows from operating activities.

• Net income and cash flows will not always agree because revenues and expenses can be recorded in different time periods than their related cash flows.