A negative net cash flow from operating activities : Question 1 options: A) indi

Question

A negative net cash flow from operating activities: Question 1 options: A) indicates the company is selling its assets for more than it cost to purchase them which is a good sign for cash flows B) indicates the company is paying more money to owners and creditors than it is receiving from them C) indicates the company is re-investing in itself in order to grow and expand D) indicates the company had a net loss using the cash basis of accounting E) indicates the company is selling off its long term assets which is not a good sign for financial health A negative net cash flow from operating activities: A negative net cash flow from operating activities: A) indicates the company is selling its assets for more than it cost to purchase them which is a good sign for cash flows B) indicates the company is paying more money to owners and creditors than it is receiving from them C) indicates the company is re-investing in itself in order to grow and expand D) indicates the company had a net loss using the cash basis of accounting E) indicates the company is selling off its long term assets which is not a good sign for financial health A) indicates the company is selling its assets for more than it cost to purchase them which is a good sign for cash flows B) indicates the company is paying more money to owners and creditors than it is receiving from them C) indicates the company is re-investing in itself in order to grow and expand D) indicates the company had a net loss using the cash basis of accounting E) indicates the company is selling off its long term assets which is not a good sign for financial health A) indicates the company is selling its assets for more than it cost to purchase them which is a good sign for cash flows B) indicates the company is paying more money to owners and creditors than it is receiving from them C) indicates the company is re-investing in itself in order to grow and expand D) indicates the company had a net loss using the cash basis of accounting E) indicates the company is selling off its long term assets which is not a good sign for financial health

Explanation / Answer

Negative net cash flow from operating activities indicates that , the business spent more than it generated on those specific activities

Therefore, indicates the company had a net loss using the cash basis of accounting

Option D -- [Answer]

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