A situation in which a company is spending moremoneythan it is receiving. While this is common in many companies, especially in the first year or two of operation, it is obviously unsustainable in thelong-term. A company with a negative cash flow often has to resort toloansorequity financin...
Unfortunately, many of these same borrowers also elected to take outadjustable-rate mortgages, or even worse,option arms, with the latter allowing fornegative amortization. This meant most couldn’t even keep up with monthly payments, or refinance to get payment relief. So they gave up on their...
Capital expenditures are moneys spent by business to buy or improve assets, such as a car, an office computer or real estate. Capital expenditures are always negative — a liability — in the accounting books because they're a business expense the IRS won't let you deduct from your taxes....
such as a car, an office computer or real estate. Capital expenditures are always negative — a liability — in the accounting books because they're a business expense the IRS won't let you deduct from your taxes. Instead, you have to recover the expense through time. ...