Attempts: T Keep the Highest: 15 2. Cash flow Aa Aa understanding the concept of cash flows and the difference between cash flows and net income is critical to the financial health of a business organization. To this end, (1) choose whether the following statements are true or false or (2) select the correct answer from the list of possible answers. True or False: The term "cash flow" refers to the movement of cash into and out of a business or project. False True True or False: Cash fows generated by collecting accounts receivable or selling goods and services for cash can then be used several ways, including purchasing additional long-term or short-term assets or distributing cash to the firm's owners and creditors. False Q True True or False: Knowing the magnitude, timing, and potential variability of the firm's cash flows is critical because they determine the firm's ability to pay its creditors, employees, suppliers, and investors. O False True