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How is it possible for a company to show positive income even thought the company is bankrupt?

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Question added by teresah njoki , RECEPTIONIST , Hilton Hotels World Wide
Date Posted: 2017/05/31
Rey Portin
by Rey Portin , FINANCE & ACCOUNTING OFFICER/HEAD , Jinisys Software Incorporated

Once a company is in the "bankrupt" status (as court order), it means it cannot generate income that resulted in failing to meet its obligation to creditors and in no way, they can recover their money from the company in full.

Therefore, positive income cannot be achieved because if the company can generate income it will not be considered as legally bankrupt unless they cooked the books.

 

 

ايمن محمد عاطف محمد
by ايمن محمد عاطف محمد , Director of the control and regulation unit , ACOLID

A bankrupt company can only earn extraordinary revenues other than the main activity by selling its production assets

Mboni Akum
by Mboni Akum , Head of Project Sales , Majeda One

The company should consider merging with another lucrative company in the same sector or one in which they can provide complementary benefits. I would have suggested marketing, but the company would have to go in for  or sell shares depending on what type of company it is

By selling its major assets, or large investment, this will show a positive (non-operating or other activities)  

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