Which one of the following statements is not true?
A) Profit does not equal cash.
B) Without a steady inflow of cash, an entity will not be a going concern.
C) Entities should aim to receive cash from sales after cash for expenses is paid out to maximize cash and minimize financing costs.
D) The statement of cash flows enables users of financial statements to determine how quickly profits are turned into cash.

Question

Quizplus · Accepted Answer

Entities should aim to receive cash from sales before or as expenses are paid out to ensure liquidity and minimize the need for external financing.

Which One of the Following Statements Is Not True