A Possible Explanation for a Company Reporting a Loss on the Profit

question 10

Multiple Choice

A possible explanation for a company reporting a loss on the profit report but a positive cash inflow of funds from operations is:

• A)a decrease in trade debtors.
• B)an increase in trade debtors.
• C)an increase in inventory.
• D)a decrease in trade creditors.

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Definitions:

Confederal Systems

Political structures in which states or regions retain considerable independence and powers, with the central government exercising only limited authority, primarily in foreign affairs and defense.

Dual Federalism

A governmental system where authority is split between national and state levels as per explicitly outlined terms, with state authorities implementing their designated powers without obstruction from the national government.

Cooperative Federalism

A concept of federalism in which national, state, and local governments interact cooperatively and collectively to solve common problems, rather than making policies separately.

Dual Federalism

A concept of federalism where the federal and state governments are seen as distinct entities providing separate powers to the people, with minimal overlap.