If cash increased during the year and there was also a loss for the year, there must be positive cash flows from financing and investing activities.

Question

Quizplus · Accepted Answer

The statement is incorrect. It is possible to have a cash increase during the year even with a loss if the company had positive cash flows from operating activities. Positive cash flows from financing and investing activities are not necessary for a cash increase to occur.

If Cash Increased During the Year and There Was Also