Which of the Following Could Account for a Firm That

question 49

Multiple Choice

Which of the following could account for a firm that has a negative net income, yet has a positive amount of cash provided by operations?

• A)the net loss was greater than the amount of depreciation expense.
• B)inventory increased significantly more than accounts payable.
• C)accounts receivable decreased by significantly more than accounts payable.
• D)the cash balance increased significantly.

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Definitions:

Yolk Sac

An extra-embryonic membrane that provides food in the form of stored yolk to the developing embryo in eggs and early vertebrates.

Epididymis

A long, coiled tube located at the back of the testis that stores and carries sperm.

Urethra

The tube that conducts urine from the bladder to the outside of the body and, in males, also conveys semen.

Scrotum

The pouch of skin containing the testicles in males, protecting them and regulating their temperature.