Asked by Annie Leishman on Jun 14, 2024

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If a company reports a loss, it

A) may still have a net increase in cash.
B) will not be able to pay cash dividends.
C) will not be able to get a loan.
D) will not be able to make capital expenditures.

Net Increase

refers to the change in a financial statement item that results in a higher amount compared to a previous period.

Cash Dividends

Payments made by a company out of its profits to its shareholders, typically in cash.

Capital Expenditures

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.

  • Investigate the outcomes of distinct transactions on the statement of cash flows.
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Ruthie WolfeJun 17, 2024
Final Answer :
A
Explanation :
A company can report a loss for the period but still experience a net increase in cash. This can occur through activities such as issuing new shares, taking on new debt, or selling assets, which can provide cash inflow despite the loss from operations.