Which one of the following is false ?

CS Executive · Cost and Management Accounting · PYQS · June 2018
Which one of the following is false ?
(A) If cash outflows exceed cash inflows on an ongoing basis, the business will eventually run out of cash
(B) Rapidly expanding companies can sometimes face a cash shortage
(C) Cash is the lifeblood of a business and without it the business will die
(D) A profitable company will never run out of cash

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Cost and Management Accounting

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