Measures of Profitability
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1. Is it possible for a company to have a profit and a negative cash flow? Yes. Profitability in most companies is measured using accrual accounting methods. Cash flow as measured in the Statement of Cash Flows uses the cash basis. The accrual basis states that revenues are recorded when earned and expenses are recorded when incurred irrespective of when the cash is received or the payments are made. It seems more likely that a company would report pos
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Approximate Word count = 308
Approximate Pages = 1 (250 words per page)
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