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.

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Definitions:

Commonsense Knowledge

The set of shared beliefs and understandings that people consider to be so obvious and necessary that they do not need to be stated.

Organizational Behavior Knowledge

Organizational behavior knowledge refers to the understanding of how individuals and groups act within organizations, encompassing concepts such as leadership, motivation, and team dynamics.

Closed Systems

Systems that do not interact with their environment; in management and organizational context, it refers to companies that are insular and not receptive to external influences.

Systematic Research Methods

Organized, structured approaches employed in investigation or study to establish facts or principles.