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Which of the following statements about the income statement is NOT true?
A. A company can show a profit and have a negative cash flow.
B. If a business is using the accrual method, the income statement can show profitability even when the business has little or no cash.
C. Because of credit terms, there is often a time lag between recording a sale and getting paid.
D. There may be a lag between paying for labor and materials and receiving finished goods.
E. Cash and profit are the same.
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