Dow Construction Company Reports a Net Use of Cash for Investing

question 73

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 increase by $.8 million.
• B) To cause the balance to decrease by $.4 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:

Consideration

An essential element in contract law that involves something of value exchanged between parties, which can include money, goods, services, or a promise to act or not act.

Statutes of Limitation

Laws that set the maximum time after an event within which legal proceedings may be initiated.

Reasonable Price

A price that is fair, considering the circumstances of the sale and the market conditions, often used in legal and commercial contexts to determine the fairness of transactions.

Stolen Piano

A piano that has been unlawfully taken from its rightful owner.