All of the following are advantages of an increasing cash flow from operations except:
A)A company is likely to pay its current bills with cash from operations not earnings.
B)A company with cash is in a better position to fund growth.
C)Large cash flows eliminate the need for borrowing.
D)Earnings are viewed better if cash flows from operations closely match net income.

Question

Quizplus · Accepted Answer

While increasing cash flow from operations can provide benefits such as an ability to pay bills and fund growth, large cash flows do not eliminate the need for borrowing entirely. Borrowing may still be necessary for large-scale projects or investments.

All of the Following Are Advantages of an Increasing Cash