The Star City reported net loss of $50,000.Cash from operating activities
A) will be more than $50,000.
B) will be less than $50,000.
C) will be equal to $50,000.
D) cannot be determined without more information.

Question

Quizplus · Accepted Answer

The net loss figure alone does not provide enough information to determine the cash flow from operating activities. Adjustments for non-cash expenses, changes in working capital, and other items are necessary to calculate cash flow from operations.

The Star City Reported Net Loss of $50,000