If $10,000 Was Generated from Operations, $4,000 Used for Investing

question 64

Multiple Choice

If $10,000 was generated from operations, $4,000 used for investing activities, and $6,000 provided by financing activities, the cash balance must have increased by

• A) $6,000.
• B) $8,000.
• C) $12,000.
• D) $20,000.

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Definitions:

Internal Failure Costs

Expenses incurred due to defects before products or services are delivered to customers, including costs related to wastage, rework, and inspection.

Scrap

Material that is discarded or waste from manufacturing processes, often capable of being recycled.

Downtime

The period during which an operation, system, or machine is not functional or productive.

Just-In-Time (JIT)

Continuous and forced problem solving via a focus on throughput and reduced inventory.