What does Positive Working Capital but Loss Mean?

1. It means that your current assets are more than your current liability and you should not hope that your working capital will increase due to loss.

2. It means that you did not create co-relation between your working capital and your business performance.

3. It means that after suffering loss, your company is still strong and has some money of previous profit for suffering loss.

4. It means that you should think seriously. Why is happening this? Is it positive sign or negative sign for business?

5. It means that you do not know its meaning and you need the help of books, teachers and Google Guru.

6. It means that you are not seeing reciprocal way. What does mean profit but working capital negative angel?

7. It means that your working capital will soon negative because, it is sure that some of expenses which you have shown in profit and loss’s debit side did not paid and they will demand their dues next morning and after paying, you will see negative working capital and still loss.

8. It means that for answering this question, I have used my one hour.

9. It means that for writing answer and publishing, I will pay lighting bill, depreciation of my computer and internet bill and if I do not receive return on this written answer, it may possible that next time, when I see my financial statement, my position will worse than you. Means negative working capital but loss.

10. It means nothing because loss means decrease in share capital not working capital.

11. It means something because if you will not give dividend to shareholders due to loss. After this your company’s share price will decrease in stock market. You can protect your company by giving dividend to shareholders even after suffering loss. After this you will see balance negative working capital and loss.

12. It means that you should not decrease the salary of your employees or retrenchment due to loss because, I am accounting teacher and I am in the home at accounting. I know that you have still money in your pocket to pay to your employees.

13. It means that you have sold all products with cash and working capital will become positive, but you have obtained all services on credit base. That is the reason, even after positive working capital, you have obtained loss.

14. It means that you need some idea from me. But I have tired; I can give you only 15 ideas regarding your problem.

15. It means that you should feel happy that God has given you chance that you can ask question. You are also  healthy. Your brain is still working. I can say only that you are 100% intelligent. I hope that you will soon become Newton the great scientist of world  who asks question first time when an apple hits his head.
Question wasWhy should that apple always descend perpendicularly to the ground, asked Newton to himself " and he got his answer in form of system of gravitation. Today, we can go to moon only to the question of Newton.

So, start to ask questions. I will give answer.






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Accounting Education: What does Positive Working Capital but Loss Mean?
What does Positive Working Capital but Loss Mean?
Accounting Education
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