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:

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single entity has a significant impact on the market prices.

Average Variable Cost

The total variable cost per unit of output, calculated by dividing total variable costs by the quantity of output produced.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the number of units produced, expressed on a per unit basis.

Marginal Revenue

The increased income from the sale of one additional unit of a good or service.