Which of the following statements is not true relating to cash flow analysis A C

Question

Which of the following statements is not true relating to cash flow analysis A Cash return on assets indicates the amount of operating cash flow generated for each dollar invested in assets. B To maximize cash flow from operations, a company strives to increase both cash flow per dollar of sales and sales per dollar of assets invested. C Cash return on assets can be separated to examine two important business strategies: cash flow to sales and asset turnover. DPositive cash flow from operations is not important to a company's survival in the long-run.

Explanation / Answer

Hi, Option D is correct. Long term stability requires continuous inflow of cash to meet day to day business requirements and finance expansion and diversification plans. Thanks.

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