Which of the following statements is false?
A)working capital represents assets needed to carry out the normal?operations of the business.
B)current liabilities that reflect amounts owed but not yet due on the date?of the balance sheet are called accruals.
C)because of accrual accounting,a firm's net income over some period?is not necessarily the same as its cash flows.
D)all the above statements are correct.

Question

Quizplus · Accepted Answer

All of the statements are correct. A) defines working capital, B) defines accruals, and C) highlights the difference between net income and cash flows due to the use of accrual accounting.

Which of the Following Statements Is False