If cash flows from operating activities is a negative amount:
A) The company must have a net loss for the year.
B) The company must have a net profit for the year.
C) The company must have paid off more debts than it earned during the year.
D) The company may have net income or a net loss for the year.

Question

Quizplus · Accepted Answer

Negative cash flows from operating activities do not necessarily indicate a net loss, as they can result from changes in working capital or other non-income factors.

If Cash Flows from Operating Activities Is a Negative Amount