How is it possible for a company to show positive net income but go bankrupt?

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Question ajoutée par Mohamed Kamal , Accounting Manager , El-Nafea United Company
Date de publication: 2017/08/09

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par Mohamed Kamal , Accounting Manager , El-Nafea United Company

Two examples include deterioration of working capital (increasing accounts receivable, lowering accounts payable), and financial shenanigans

How is it possible for a company to show positive net income but go bankrupt?
Top Answer: If assets were assessed on the basis of historical value if it is greater than the current value Voir Plus

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A question for professional accountants: How is it possible for a company to show positive net income but go bankrupt?
Top Answer: Due to some reasons like the following :- 1) Increase in Accounts Receivable (AR) 2) Decrease in Accounts ... Voir Plus

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How is it possible for a company to show positive net income but go bankrupt?
Top Answer: Simply, at the origin of its result there is too high a proportion of transactions that have not resulted ... Voir Plus

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How is it possible for a company to show positive net income but go bankrupt?
Top Answer: Profit and cash-flow are related financial measurements in accounting but they are not directly linked. P ... Voir Plus

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