Jessie's Bobcat Rentals' Operations Provided a Negative Net Cash Flow

question 11

Multiple Choice

Jessie's Bobcat Rentals' operations provided a negative net cash flow last year, yet the cash shown on its balance sheet increased.Which of the following statements could explain the increase in cash, assuming the company's financial statements were prepared under generally accepted accounting principles?

• A) The company had high depreciation expenses.
• B) The company repurchased some of its common stock.
• C) The company dramatically increased its capital expenditures.
• D) The company retired a large amount of its long-term debt.
• E) The company sold some of its fixed assets.

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Definitions:

Growth

The process of increasing in size, strength, or importance.

Psychological Size

The perceived power or influence one has over others, often influenced by status, expertise, or personality.

Perceived Power

The degree to which individuals believe they have control or influence over certain situations or people.

Two-Way Communication

A process of exchange where information is sent and received by both parties, facilitating open dialogue and feedback.