Multiple Choice
Which of the following statements is true?
A) If a company reports net income on its income statement,it should report an increase in cash on its statement of cash flows.
B) If a company reports a net loss on its income statement,it should report a decrease in cash on its statement of cash flows.
C) If a company uses the accrual basis of accounting,it will improve its cash position if it reports net income for the same period.
D) If a company uses the accrual basis of accounting,its cash balance can increase even if it reports a net loss.
Correct Answer:

Verified
Correct Answer:
Verified
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