"I like it!" exclaimed your friend."I lost money in the business, but my bank account increased!" How is it possible for a company to report a loss on the income statement but have an increase in cash? Give an example of one item that could lead to this situation; focus on the cash from operations.

Question

Quizplus · Accepted Answer

The Answer of "I like it!" exclaimed your friend."I lost money in the business, but my bank account increased!" How is it possible for a company to report a loss on the income statement but have an increase in cash? Give an example of one item that could lead to this situation; focus on the cash from operations.

"I Like It!" Exclaimed Your Friend