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Yes and No. If the method of accounting followed is Mercantile, Yes. If the method of accounting followed is Cash System, No. In Mercantile method of Accounting, Negetive Income represents the excess of expenditure over income. In this method; Income and Expenditure considered are on accrual basis, i.e., income or expenditure is taken as such in the books of account; the moment a right to receive income or a liability to pay for expenditure has crytallised. The movement fo cash into the business or out of business is not the criteria. Therefore, inspite of a negative income in a particular year, a business may have a positive Cash flow on account of excess of cash flow arising out of previous years income, which is held as an asset in the form of Sundry Debtors, over the payments made in respect of previous years expenditure which is held as a liability in the form of Sundry Creditors on the balance sheet.
What else can I help you with?
How can I obtain a cash advance with a negative balance?
It is generally not possible to obtain a cash advance with a negative balance. Cash advances are typically given based on a positive account balance or credit limit. If you have a negative balance, you may need to first deposit funds to bring your account to a positive balance before requesting a cash advance.
Wages are paid cash and not in a bank account is it possible to get a loan?
I doubt it, without proof of income
What is the impact of net income on cash flow?
Net income impacts cash flow by reflecting a company's profitability over a specific period, but it does not always equate to actual cash generated. While a positive net income can suggest strong financial health, it may include non-cash items like depreciation or changes in working capital that affect cash flow. For accurate cash flow analysis, it's essential to adjust net income by adding back non-cash expenses and accounting for cash movements related to operating activities. Thus, while net income is a key indicator, it must be interpreted alongside cash flow statements for a complete financial picture.
Why one firm could have positive cash flows and be headed for financial trouble while another firm with negative cash flows could actually be in a good financial position?
It all depends on how they run their business. If the one with positive cash flow has a lot of debts, they are going to lose out.
Is it possible to overdraft on Cash App?
Yes, it is possible to overdraft on Cash App if you have linked a debit card or bank account and make a transaction that exceeds your available balance. This can result in fees and negative account balances.
Can cash flow from operation be positive if net income is negative?
Yes, cash flow can be positive while net income is negative.
Is it possible to have a negative net cash flow but positive cash on the balance sheet?
Yes. In this case you should see that the cash balance decreased during the period.
How can I obtain a cash advance with a negative balance?
It is generally not possible to obtain a cash advance with a negative balance. Cash advances are typically given based on a positive account balance or credit limit. If you have a negative balance, you may need to first deposit funds to bring your account to a positive balance before requesting a cash advance.
What is different between positive cash flow and negative cash flow?
positive cash flows are inflows while negative cash flows means cash out flow from different activities.
Is The increase of AP on the statement of cash flow positive or negative?
positive as the cash flow
Does the increase of AP on the statement of cash flow show a negative or positive effect on cash flow?
The increase of A/P on the statement of cash flow show?
What is negative and positive and neutral cash flow?
NEGATIVE CASH FLOW IS WHEN YOU SPEND MORE MONEY THAN YOU HAVE COMING IN POSITIVE IS THE OPPSITE WHEN YOU MAKE MORE THAN YOU SPEND AND NUETRAL IS WHEN YOU BREAKE EVEN
Is it possible for a company to have a profit and a negative cash flow?
No
Why is your Mafia Wars cash flow a minus when the total income is a positive?
It's negative because you own weapons, etc. that cost more (upkeep) than your income is. If you're making $500,000 every hour but your upkeep is $750,000 then you're losing $250,000 every hour.
Is AR a positive balance sheet entry that has a negative effect on Net Cash?
True
What is conventional projects?
A project with a negative initial cash flow(cash out flow),which is expected to followed by one or more future positive cash flows(cash inflows) is called conventional project.
Wages are paid cash and not in a bank account is it possible to get a loan?
I doubt it, without proof of income
