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  1. business
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  3. which of the following statements about the income

Which of the following statements about the income statement is NOT true? A. A company...

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Accounting

Which of the following statements about the income statement is NOT true?

A. A company can show a profit and have a negative cash flow.

B. If a business is using the accrual method, the income statement can show profitability even when the business has little or no cash.

C. Because of credit terms, there is often a time lag between recording a sale and getting paid.

D. There may be a lag between paying for labor and materials and receiving finished goods.

E. Cash and profit are the same.

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