A company may incur a loss during an accounting period but have more money in its bank account at the end of the period than it had at the beginning. Which of the following, on its own, could explain this situation? A decrease in inventories over the course of the period An increase in trade receivables over the course of a period Repaying a long-term loan Paying trade suppliers more quickly this period than in previous accounting periods
A company may incur a loss during an accounting period but have more money in its bank account at the end of the period than it had at the beginning. Which of the following, on its own, could explain this situation? A decrease in inventories over the course of the period An increase in trade receivables over the course of a period Repaying a long-term loan Paying trade suppliers more quickly this period than in previous accounting periods
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company may incur a loss during an accounting period but have more money in its bank account at the end of the period than it had at the beginning.
Which of the following, on its own, could explain this situation?
| A decrease in inventories over the course of the period | |
| An increase in trade receivables over the course of a period | |
| Repaying a long-term loan | |
| Paying trade suppliers more quickly this period than in previous accounting periods |
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