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Author Question: Cash flow is ________. A) the increase but not decrease in cash for the period B) the decrease ... (Read 140 times)

burchfield96

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on: Jul 10, 2018
Cash flow is ________.
 
  A) the increase but not decrease in cash for the period
  B) the decrease but not increase in cash for the period
  C) the increase or decrease in cash for the period
  D) the net income for the period

Question 2

Net income is ________.
 
  A) the accounting profit from the operations of the company during the period
  B) cash flow
  C) the accounting profit from the non-operating assets of the company during the period
  D) always equal to the dividends paid to shareholders


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flexer1n1

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Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: C
Explanation: C) Net income is the accounting profits from the operations of the company during the period and thus would not typically be the cash flow (except by coincidence). Cash flow can be positive or negative and thus is the increase or decrease in cash for the period.

Answer to Question 2

Answer: A
Explanation: A) Net income is not cash flow. Net income is the accounting profits from the OPERATIONS of the company during the period. Cash flow is the increase or decrease in cash for the period.


burchfield96

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Reply #2 on: Jul 10, 2018
Thank you :)


flexer1n1

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Reply #3 on: Jul 10, 2018
Happy to help you


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