Is the net income of a year the money the company made that particular year or is it a number whose significance is quite doubtful?

Question added by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town
Date Posted: 2014/03/16

Upvote (4) Views (1) Followers (2) Answers (1) Report Question

Write an Answer
Register now or log in to answer.

by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

The net income of a year is not money that accumulates in the safe. Therfore, it is not money the company earned.

Upvote (3)

Downvote Reply () Report

How is it possible for a company to show positive net income but go bankrupt?
Top Answer: If a company’s sales revenue increases too quickly without having financial resources to support that gro ... See More

Answers (1)
If the company using FIFO switches to using LIFO in an inflationary environment, who will report a higher net income going forward?
Top Answer: <p>Yes during the inflationary period, shifting of pricing method of an inventory from FIFO to LIFO ... See More

Answers (11)
How can a Company Show Positive Net Income but go Bankrupt?
Top Answer: A company can show positive net income while facing bankruptcy by deteriorating working capital (by enhan ... See More

Answers (2)
Which of the following statement(s) is(are) true regarding the relationship between absorption costing net income and variable costing income?
Top Answer: <p>D. In absorption costing, the fixed manufacturing overhead cost becomes part of product cost. He ... See More

Answers (3)

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.

Get Help