Analysis Reveals That a Company Had a Net Increase in Cash

question 120

Multiple Choice

Analysis reveals that a company had a net increase in cash of $20,000 for the current year.Net cash provided by operating activities was $18,000;net cash used in investing activities was $10,000 and net cash provided by financing activities was $12,000.If the year-end cash balance is $24,000,the beginning cash balance was:

• A)$4,000.
• B)$16,000.
• C)$44,000.
• D)$40,000.
• E)$39,000.

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Definitions:

Conforming Goods

Products that meet the specifications and quality standards agreed upon in a contract.

Common Law

A legal system based on custom and court rulings, as opposed to written laws enacted by a legislative body.

Reasonable Period

An amount of time which is fairly necessary under circumstances for a specific action or event to take place, subject to interpretation based on context.

Obligation to Demand

Refers to a formal requirement or necessity to formally request or insist upon something, which can be part of contractual or legal proceedings.