If cash flows from operating activities is a positive amount,then:
A)The amount will be shown on the statement of cash flows in parentheses.
B)The company must have had a net profit for the year.
C)The company must have paid off more debts than it earned during the year.
D)The company may still have a decrease in the total amount of cash for the period.

Question

Quizplus · Accepted Answer

A positive cash flow from operating activities indicates that the company generated more cash than it spent in its core business operations. However, this does not guarantee an overall increase in cash for the period, as the company could have used cash in investing or financing activities, leading to a net decrease in cash.

If Cash Flows from Operating Activities Is a Positive Amount,then