Please Help: Cash Losses means
Posted Date : 10-Jul-2012 , 12:49:35 pm | Posted By Hardik Thakkar
please explain in the context of companies Act, Cash Losses means???
Category : Audit | Answers : 2 | Comments : 1 | Hits : 254
Answers
Answer By: Surendra Kumar Dash
cash loss is the cash used in operating activities (negative cash flows from operating activities). Cash loss is computed after adding back all non-cash expenditure/income to book loss/profit, then adjusted for increase/decrease in working capital. If after making above adjustments resulting amount is negative then its cash loss.
Answer By: Krishna Chandra Santi
Cash loss is not an actual loss. It is calculated to know the actual cash movements. Cash loss represents excess utilization of cash in the business than income in a particular financial year.
Comments
Lalit
10-Jul-2012 , 10:39:36 pmcash loss means loss for the year after adjustment of non cash expenses like depreciation,accrued expenses etc.