Regarding the Statement of Cash Flow, which of the following is not true regarding operations?
A)A financially healthy company generates sustained cash inflows from selling goods and providing services
B)Assessed over several years, the cash flow from operations indicates the extent to which operating activities generate more cash than they use
C)A firm can use the excess cash flow from operations to acquire buildings and equipment, pay dividends, retire long-term debt
D)A firm cannot use the excess cash flow from operations for investing and financing activities
E)All of the above are not true.

Question

Quizplus · Accepted Answer

This statement is not true as a firm can use the excess cash flow from operations for investing and financing activities as well. The statement only mentions the possible uses of excess cash flow from operations.

Regarding the Statement of Cash Flow, Which of the Following