Is the net income of a year the money the company made that particular year or is it a number whose significance is quite doubtful?

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Question ajoutée par Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town
Date de publication: 2014/03/16

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par Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

The net income of a year is not money that accumulates in the safe. Therfore, it is not money the company earned.

How is it possible for a company to show positive net income but go bankrupt?
Top Answer: If a company’s sales revenue increases too quickly without having financial resources to support that gro ... Voir Plus

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If the company using FIFO switches to using LIFO in an inflationary environment, who will report a higher net income going forward?
Top Answer: <p>Yes during the inflationary period, shifting of pricing method of an inventory from FIFO to LIFO ... Voir Plus

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How can a Company Show Positive Net Income but go Bankrupt?
Top Answer: A company can show positive net income while facing bankruptcy by deteriorating working capital (by enhan ... Voir Plus

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Which of the following statement(s) is(are) true regarding the relationship between absorption costing net income and variable costing income?
Top Answer: <p>D. In absorption costing, the fixed manufacturing overhead cost becomes part of product cost. He ... Voir Plus

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