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Can a company show an increase in cash even if reporting a net loss? Why?

Can a company show an increase in cash even if reporting a net loss? Why?

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Answer #1

YES, company can show an increase in cash even if reporting a net loss.

Explanation

Sources of income of cash for a company can be different. These may involve the recovery of debts, acquisition of new loans, sale of an asset or any miscellnious payment received shows an increase in cash.

On the other hand company reporting a net loss is different as whether a company have net profit or net loss it is concluded only after the preparation of financial statements (income statement) and these are prepared the end of an accounting year. But during the year company goes through different transactions which may involve income of cash and ultimately statement of company will show increase in cash.
All the transactions will also take place even if the company is reporting a net loss.

So, it can be said that a company can show increase in cashveven if reporting at net loss.

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