A profitable company would always have a positive cash flow.

Name: A profitable company would always have a positive cash flow.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A company can be profitable on paper (showing a net income) but still have negative cash flow due to factors like high investments, large amounts of accounts receivable, or significant debt payments. Profitability is measured by income and expenses, while cash flow looks at the actual inflow and outflow of cash.

A Profitable Company Would Always Have a Positive Cash Flow