Question \#6 of 15 Cash flow is ALWAYS positive. True False

**Step 1: Define Cash Flow** Cash flow is the net amount of cash that a company receives or spends during a given period. It can be represented mathematically as: \[ \text{Cash Flow} = \text{Cash Inflows} - \text{Cash Outflows} \] **Step 2: Understanding the Nature of Cash Flow** - If \(\text{Cash Inflows} > \text{Cash Outflows}\), then the cash flow is positive. - If \(\text{Cash Inflows} < \text{Cash Outflows}\), then the cash flow is negative. There is no rule or inherent quality that a company's cash flow must always be positive. In fact, negative cash flow can occur during periods of heavy investment, operational challenges, or economic downturns. **Step 3: Conclusion** Since cash flow can be negative as well as positive, the statement "Cash flow is ALWAYS positive" is false. **Answer: False**