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

Question

Quizplus · Accepted Answer

A company can report a net 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 in operations.

If a Company Reports a Net Loss, It