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:

Contact Metamorphism

A process where rocks are altered due to heat and chemical fluids from nearby magma.

Normal Faults

Fractures in the Earth's crust where rock layers have moved vertically relative to each other due to extensional forces.

Shearing

The deformation of a material by slippage along parallel planes, often associated with faults and seismic activity in the Earth's crust.

Anticline

A type of fold in rock layers that forms an arch-like shape, with the oldest layers at the core.