Which of the following statements is false? (a) A negative cash flow can occur in a year
Question:
Which of the following statements is false?
(a) A negative cash flow can occur in a year in which net income is positive.
(b) An increase in accounts receivable represents accounts not yet collected in cash.
(c) An increase in accounts payable represents accounts not yet collected in cash.
(d) To obtain cash flow from operations, the reported net income must be adjusted.
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Related Book For
Understanding Financial Statements
ISBN: 9780138114404
12th Edition
Authors: Lyn Fraser, Aileen Ormiston
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