Dow Construction Company Reports a Net Use of Cash for Investing

question 58

Multiple Choice

Dow Construction Company reports a net use of cash for investing activities of $1.2 million and a net source of cash provided by financing of $.8 million. What was the effect on the cash balance?

• A) To cause the balance to decrease by $.4 million.
• B) To cause the balance to increase by $.8 million.
• C) To cause the balance to increase by $.4 million.
• D) Undeterminable because the beginning cash balance was not given.

---

Definitions:

μ

A symbol representing the mean or average of a population in statistics.

≠ Symbol

Represents 'not equal to' in mathematical expressions, indicating that two values are not the same.

Null Hypothesis

A statement in hypothesis testing that assumes no significant difference or effect exists between certain measured phenomena or populations.

Directional

Pertaining to a hypothesis or test that specifies the expected direction of the relationship between variables.