1. Give one reason that can cause a firm to report negative cash flow in the same period that it reports a positive net income?

2. Give one reason that can cause a firm to report positive cash flow in the same period that it reports a negative net income?

3. Finally, give an example of how cash flow is managed in your organization or an example of how a firm can increase cash flow when sales volume is decreasing.

Answer rating: 100% (QA)

1 One Reason is the revenue is recorded on accrual basis and not on cash basis hence it will ... View the full answer