Suppose a Company Generally Records Revenues and Expenses Before Receiving

Multiple Choice

Suppose a company generally records revenues and expenses before receiving or making cash payments.Which of the following statements is then true?

A) If sales are falling,net losses could occur even though the company reports net cash inflows from operating activities.
B) If sales are rising,net profits could occur even though the company reports net cash outflows from operating activities.
C) Net income and cash flows will not always agree because revenues and expenses can be recorded in different time periods than their related cash flows.
D) All of the answers are acceptable.