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Which of the following is FALSE? Question 28 options: Net income as calculated on the income...

Which of the following is FALSE?

Question 28 options:

Net income as calculated on the income statement is not the net cash flow of a firm.

the cash flow identity states that all net cash flows earned by the firm are distributed to shareholders and creditors.

Assets on the Balance Sheet are listed in order of their liquidity, beginning with the most liquid.

The book value of an asset on the balance sheet will always be reasonably close to its market value.

DuPont Analysis is useful because it lets you see how ROE is impacted by the firm's leverage, efficiency, and profit margin.
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Answer #1

False statement is 2 nd statement

Explanation ; assets on the balance sheet will be on the order of liquidity and first less liquid will be begining(fiixed assets)

Net income as calculated on the income statement is not the net cash flow of a firm is true  because after net income in income statement we need to add non cash expense

the cash flow identity states that all net cash flows earned by the firm are distributed to shareholders and creditors. this is also true cash flow will be distributed to creditors and share holders

The book value of an asset on the balance sheet will always be reasonably close to its market value. this is also true they are reasonably close but not the same

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