Relative to Plant Assets,how Can a Company Report a Net

question 194

Essay

Relative to plant assets,how can a company report a net loss for a period and yet still have positive cash flows from operating activities?

---

Definitions:

Report Form

The form of balance sheet with the Liabilities and Owner’s Equity sections presented below the Assets section.

Single-Step Form

An income statement format that subtracts total expenses from total revenues to find net income in one step.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, resulting in a net income or loss.

Cash Sales

Transactions in which payment is made in cash at the time of sale, rather than on credit.