This topic contains a solution. Click here to go to the answer

Author Question: Cash flow is ________. A) the increase but not decrease in cash for the period B) the decrease ... (Read 157 times)

burchfield96

  • Hero Member
  • *****
  • Posts: 610
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



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

flexer1n1

  • Sr. Member
  • ****
  • Posts: 373
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.





 

Did you know?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

Did you know?

Chronic necrotizing aspergillosis has a slowly progressive process that, unlike invasive aspergillosis, does not spread to other organ systems or the blood vessels. It most often affects middle-aged and elderly individuals, spreading to surrounding tissue in the lungs. The disease often does not respond to conventionally successful treatments, and requires individualized therapies in order to keep it from becoming life-threatening.

Did you know?

Your heart beats over 36 million times a year.

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Did you know?

Russia has the highest death rate from cardiovascular disease followed by the Ukraine, Romania, Hungary, and Poland.

For a complete list of videos, visit our video library