question archive which of the following statements is most correct concerning the relationship between a companys cash budget and its income statement? a

which of the following statements is most correct concerning the relationship between a companys cash budget and its income statement? a

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which of the following statements is most correct concerning the relationship between a companys cash budget and its income statement?

a. if net income is positive, then cash flow could be positive or negitive, but if net income is negative, cash flow must also be negative.

b. if net income is positive, then cash flow must be positive.

c. cash flow could be positive whether net income is positive or negative.

d. if net income is positive for 3 or more months in a row, then cash flow must be positive.

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Answer:

C.cash flow could be positive whether net income is positive or negative

Option C is Correct because Income statement is as per Accrual basiss and cash flow is per Cash basis

 

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