Multiple choice

Directions: State whether the following statement is True Or False.

A “Cash Flow Statement” can very well be equated with an “Income Statement”.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

An income statement shows profitability (revenue vs. expenses), while a cash flow statement shows liquidity (cash inflows vs. outflows). They serve different purposes.

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