Understanding Cash Flows

Cash helps maintain liquidity and operations.

Profit directly correlates to cash availability.

Cash only becomes important in the long term.

Profit and cash are always equal.

Depreciating a non-current asset.

Making a sale on credit.

Repayment of a loan.

Buying inventory for cash.

It provides insight into revenue and expenses.

It shows the business's ability to generate cash.

It replaces the balance sheet.

It only highlights profit margins.

Profit includes depreciation, while cash flow does not.

Profit and cash flow are always identical.

Cash flow accounts for accrual-based transactions.

Profit only reflects cash transactions.

Over-trading and delayed customer payments.

Making all sales on credit.

Paying off all debts immediately.

Expanding into new markets.

Payment of salaries.

Buying a non-current asset.

Issuing dividends.

Receiving customer payments.

Depreciation of machinery.

Cash sales to customers.

Issuance of shares for cash.

Credit sales to customers.

Increase cash inflows.

Decrease cash inflows.

No effect on cash flow.

Increase cash outflows.

Increases cash inflows.

Decreases cash inflows.

Increases cash outflows.

No impact on cash flow.

Operating activities.

Investing activities.

Financing activities.

None of the above.