Which of the following is/are false?
a. Firms do not necessarily recognize revenues when they receive cash
b. Firms do not necessarily recognize expenses when they disburse cash.
c. Net income will not necessarily equal cash flow from operations each period.
d. A profitable firm will likely borrow funds in order to remain in business, but eventually operations must generate cash to repay the borrowing.
e. None of the above are false
E
You might also like to view...
Which test does the United States Supreme Court require to be used when examining
laws involving gender-based classifications? a. The substantial relationship test b. The strict scrutiny test c. The reasonable relationship test d. The rational relationship test
Which of the following statements is true regarding the relationship of law and ethics?
A) In some cases ethics will require a higher standard of conduct than the law, but never vice versa. B) The legal requirement will almost always be the same as the ethical requirement because the law is based on the ethical standards. C) In some cases the law will require a higher standard of conduct than ethics, but never vice versa. D) Depending on the circumstances, the law can require a higher, lower, or the same standard of conduct as ethics demands.