An increase in sales and/or profits means there is also an increase in cash on the balance sheet.

Question

Quizplus · Accepted Answer

An increase in sales and/or profits does not necessarily mean there is an increase in cash on the balance sheet. It depends on factors such as the timing of revenue recognition, credit sales, inventory levels, and expenses. Cash flow must also be considered, as profits may be affected by non-cash items such as depreciation and amortization.

An Increase in Sales And/or Profits Means There Is Also