1: Which statement summarizes changes to parts of the balance sheet?
a. Income statement b. Cash flow statement c. Neither of the above d. Both of the above
2: What happens when a company is profitable but collection lags behind payments to vendors? a. The company is OK because profits always become cash b. The company stands a good chance of running out of money c. The company needs to shift its focus to EBIT d. The cash flow statement will show a negative bottom line
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