Question

Which of the following statements is true?
A negative cash flow is definite sign that the company is near of bankruptcy
A negative cash flow means that there could have been a large investment
A negative cash flow means that the company is doing poorly
A negative cash flow is not a reliable indicator of anything
GPT-4o mini
The statement that is true is:

**A negative cash flow means that there could have been a large investment.**

Negative cash flow can occur due to various reasons, including large capital expenditures for investments in growth or expansion. It does not necessarily indicate that a company is in financial trouble, as businesses often incur negative cash flow during periods of heavy investment before reaping future benefits.

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