"Profit Is a Poor Substitute for Cash Flow

Multiple Choice

"Profit is a poor substitute for cash flow." Which two of the following examples accurately apply to that statement?

A) Profit only affects incremental aspects of cash flow.
B) Profit rather than cash flow is crucial for long term increases in investor value.
C) Working capital adjustments may be needed to modify the profit figures for NPV analysis.
D) Depreciation is not a cash flow and should be excluded.