It is possible for a company to have a negative cash flow and be profitable.

Name: It is possible for a company to have a negative cash flow and be profitable.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A company can be profitable on paper (showing a net income) but still have negative cash flow due to factors like heavy investment in assets, high accounts receivable, or significant debt payments, which do not immediately impact profit but do reduce cash available.

It Is Possible for a Company to Have a Negative