Which of the Following Statements Is More Likely If Cash

question 60

Multiple Choice

Which of the following statements is more likely if cash and marketable securities increase by $5,000 during a period in which cash provided by operations increases by $1,000 and cash used by investments decreases by $500?

• A)cash provided by financing increases by $6,500.
• B)cash used by financing decreases by $1,000.
• C)debt increases by more than cash dividends paid.
• D)debt is reduced by more than cash dividends paid.

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Definitions:

Direct Materials Cost

The cost of raw materials directly used in the production of products or services.

Sales

Revenue generated from the sale of goods or services.

Desired Profit

The target earnings a company aims for in a specific period as part of its financial and strategic planning.

Unit Variable Cost

The cost associated with producing one additional unit of a product, excluding fixed costs.