Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. is it possible for a firm to have a positive profi

Is it possible for a firm to have a positive profit and yet have a negative...

80.2K

Verified Solution

Question

Finance

Is it possible for a firm to have a positive profit and yet havea negative cash flow? Describe a scenario under which this mightoccur? Where does the money from profits go in such a case?

Answer & Explanation Solved by verified expert
3.9 Ratings (665 Votes)
The answer to the above question is Yes It is quite possible that a firm may post a positive profit in profit and loss statement however the cash flow shows negative cash flows The primary reason behind the same is the accounting treatment    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Chemistry
1.2K views

Find the value of the equilibrium constant Kc at 460°C for the reaction- ½ H2(g) + ½...

Biology
1.2K views

Discuss how bacteriophages cause mutations (in a long paragraph essay )

Accounting
1.2K views

what the impact of a specific technology on auditing. Provide a description of the technology, an...

Biology
1.2K views

different from seedless non vascular plants vascular plants cling to sheltered rocks and non vascular...

Basic Math
1.2K views

Math II e a composition of transformations t KLM to PQRS

Basic Math
1.2K views

If you make the right choices regarding youryou will have good health.A. lifestyleB. friendsC. bone...

Calculus
1.2K views

Givenh(x) = g(f(x)) At x = 0, the equation of the tangent line of g...

Algebra
1.2K views

Here are your stats from each fight 1st fight 62 points 2nd fight 52 points...

Algebra
1.2K views

5 You work for a roofing company and must order the correct number of tiles...

Accounting
1.2K views

4.- Labor Variances Cinturon Corporation produces high-quality leather belts. The company's plant in Boise uses...

Accounting
1.2K views

At the end of August, Thunder Manufacturing is evaluating older inventory that has been sitting...

Accounting
1.2K views

Part 2.4 Profitability Address the following questions and any other observations you think are important...