A company can have a net loss and still generate a positive net cash provided by operating activities in its statement of cash flows.

Question

Quizplus · Accepted Answer

This can happen when a company incurs non-cash expenses such as depreciation or amortization, which do not affect the cash balance, but are included as expenses in the income statement. Additionally, changes in working capital such as accounts receivable, accounts payable, or inventory can also affect cash flow from operating activities, regardless of the net income or loss.

A Company Can Have a Net Loss and Still Generate