Question

If a company reports a net loss...(10 points)?

If a company reports a net loss, it

A.will not be able to make capital expenditures
B.will not be able to get a loan.
C.will not be able to pay cash dividends.
D.may still have a net increase in cash.


please cite your source or justify your answer, thanks!!

5 years ago - 2 answers

Best Answer

Chosen by Asker

D. is the only correct answer.

A. Capital expenditures are often made in a period with a net loss and often the cause.

B. Has nothing to due with a reported loss.

C. Often lives up to the promised dividend in down period.

Source(s):

5 years ago

Other Answers

won't be able to get a loan
as u know net loss we only get to know by calculating our assets, liabilities and equities and when in the business we suffer loss then the next decision we probably make is to cut down the companies loan

Source(s)

by $@M - 5 years ago