Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) Rapid growth spurs increases in market share and profits and thus,is always a blessing.
B) Firms that grow rapidly only very rarely encounter financial problems.
C) The cash flows generated in a given time period are equal to the profits reported.
D) Profits provide assurance that cash flow will be sufficient to maintain solvency.
E) Due to required cash investments in current assets,fast-growing and profitable companies can literally "grow broke".