How is it possible for a company to show positive net income but go bankrupt?

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Question added by Ahmed Subhy , Chief Accountant , Intelligent Services Co.
Date Posted: 2018/07/18

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How is it possible for a company to show positive net income but go bankrupt?
Top Answer: Two examples include deterioration of working capital (increasing accounts receivable, lowering accounts ... See More

Answers (1)
How is it possible for a company to show positive net income but go bankrupt?
Top Answer: If assets were assessed on the basis of historical value if it is greater than the current value See More

Answers (7)
A question for professional accountants: How is it possible for a company to show positive net income but go bankrupt?
Top Answer: Due to some reasons like the following :- 1) Increase in Accounts Receivable (AR) 2) Decrease in Accounts ... See More

Answers (9)
How is it possible for a company to show positive net income but go bankrupt?
Top Answer: It's impossible because incomestatment show net income in positiv but auditing checked it See More

Answers (1)