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Q. > Please Help: Cash Losses means
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899 views • Question added Jul 10, 2012 • Audit • By Hardik Thakkar , Ahmedabad


please explain in the context of companies Act, Cash Losses means???

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answered Jul 10, 2012 by Surendra Kumar Dash , Bhubaneswar

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.


answered Jul 11, 2012 by Krishna Chandra Santi , Chennai

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.


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Lalit

10-Jul-2012 , 10:39:36 pm

cash loss means loss for the year after adjustment of non cash expenses like depreciation,accrued expenses etc.

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