What are the possible reasons and risks if net cash flow from operating activities is negative?

Question added by Irfan Hamid ACCA
Date Posted: 2013/11/04

Upvote (1) Views (2) Followers (0) Answers (1) Report Question

Write an Answer
Register now or log in to answer.

1 Answers

by Mohammed Salim Allana , Compliance and Assurance Manager , United Arab Bank

In general terms, this reflects that the sources of incomes and gains are LESS then the cost and expenses of the company. The company has a problem in managing their resources and funds effectively.

Upvote (0)

Downvote Reply () Report

More Questions Like This

Assume that a firm has accurately calculated the net cash flows relating to an investment proposal.
Top Answer: My answer is option (D) accept the proposal See More

Answers (12)
What is Cash Flow Statement Show a Company's Stability?
Top Answer: statement of cash flows shows the entity’s ability togenerate positive future net cash flows (liquidity), ... See More

Answers (81)
What is the difference between the direct and indirect method of calculating cash flow from operations?
Top Answer: B. The direct method starts with sales and follows cash as it flows through the income statement, while t ... See More

Answers (6)
How would an increase in the Prepaid Insurance act of $5,000 over the year be shown on the statement of cash flows prepared under the indirect method?
Top Answer: D) As a deduction from net income of $5, in order to arrive at net cash provided by operating activit ... See More

Answers (1)

Products By Bayt.com

Use Our Mobile App

Start networking and exchanging professional insights

What are the possible reasons and risks if net cash flow from operating activities is negative?

Popular Searches

More Questions Like This