It is possible for a hospitality operation to be operating at a profit during any given month but to simultaneously have insufficient cash flow during that same month. True or False

True

Explanation:

A business is profitable when its net revenues exceed its total costs. The cash flow statement indicates the level of cash held by an organization at the end of a period. It shows cash movement in and out of business.  A cash flow statement does not tell whether a company is profitable or otherwise.

The income statement is the financial report that shows a firm's profitability. The statement shows a company's revenues at the top, the aggregate of all expenses, and profit or loss at the bottom. The income statement and the cash flow statement are two independent reports. Information from one of the statements does not point out what the other will indicate. A business can have a positive net cash balance yet make a loss in theta period. The opposite is also possible.