Question: Which statement is generally false? Neither inventory nor accounts receivables should grow faster than sales If inventory trend is inversely related to the accounts payable

Which statement is generally false? Neither inventory nor accounts receivables should grow faster than sales If inventory trend is inversely related to the accounts payable trend, something may be wrong If net income is moving up while cash flow from operations is drifting down, something may be wrong Horizontal analysis is commonly used with the Statement of Cash Flow The trend in operating income is as important as the trend in earnings

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