Which of the Following Could Be Indicative of Cash Flow

question 27

Multiple Choice

Which of the following could be indicative of cash flow problems or a result of an expansion?

• A) Increasing accounts receivable and decreasing inventories.
• B) Increasing accounts receivable and increasing inventories.
• C) Decreasing accounts receivable and increasing inventories.
• D) Decreasing accounts receivable and decreasing inventories.
• Short Answer/Problem

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Definitions:

Nonrival-in-Consumption

A characteristic of a good or service where its consumption by one individual does not reduce its availability for consumption by others.

Common Good

A societal benefit that is shared and beneficial for all (or most) members of a community, such as clean air, public parks, and national defense.

Government Provision

The supply of goods or services provided by the government to its citizens, often funded by taxation.

Economic Goods

Products or services that have a positive economic value and thus are subject to scarcity, requiring consumers to make choices about their allocation.