Which of the following could account for a firm that has a negative net income,yet has a positive amount of cash provided by operations?

Question

Quizplus · Accepted Answer

A decrease in accounts receivable could indicate that the company collected more cash from customers during the period, resulting in a positive amount of cash provided by operations. However, the net income was negative, which means that the company's expenses exceeded its revenues. This is unrelated to the change in accounts receivable and could be due to factors such as high operating expenses or one-time charges. Option A is incorrect because depreciation is a non-cash expense that is added back to net income when calculating cash provided by operations. Option B and D are also unlikely to be the primary reasons for a negative net income, as they do not directly affect profitability.

Which of the Following Could Account for a Firm That