What Is the Most Likely Conclusion for a Firm Whose

question 11

Multiple Choice

What is the most likely conclusion for a firm whose statement of cash flows shows an increase in cash balances and has negative cash flows from both operations and financing?

• A)the firm has low depreciation expense.
• B)the firm did not pay any dividends.
• C)the firm sold more equipment than it purchased.
• D)the firm has a low interest rate on its debt.

---

Definitions:

Uncertainty

The state of having limited knowledge where it is impossible to exactly describe the existing state, a future outcome, or more than one possible outcome.

Cultural Hazard

Risks to health or safety arising from the cultural practices, beliefs, or societal norms of a group.

Floods

Natural disasters characterized by the overflow of water that submerges land usually dry under normal conditions, often due to heavy rainfall or the melting of snow.

Drugs

Substances used for medical treatment, or substances that cause changes in perception, mood, or consciousness when abused.