Asked by sonia

1) during last year a company went through $800,000 worth of net loss. yet its cash increased 300,000 during the same period of time. How could this occur.

Please help confused!

Answers

Answered by economyst
I can think of two reasons. First, the company has an accrual accounting system rather than a cash accounting system. Second, the company claims a depreciation deduction.
There are no AI answers yet. The ability to request AI answers is coming soon!

Related Questions