If a Company Reports a Negative Dollar Amount Under Cash

question 16

Multiple Choice

If a company reports a negative dollar amount under cash flows from investing activities,a possible explanation is that:

• A)it has purchased a significant amount of equipment.
• B)its expenses are greater than its revenues.
• C)the market value of its stock has gone down.
• D)it has paid a large cash dividend to its stockholders.

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Definitions:

Fraudulent

Involving deceit, trickery, or breach of confidence, intended to gain an unfair or unlawful advantage.

Tort Of Deceit

A legal wrong involving the intentional misrepresentation of fact, with the aim of making someone rely on it to their detriment.

Non Est Factum

“It is not my act”—grounds for a court to declare a contract void because a party is unaware of the nature of the contract.

Misrepresentation

A false statement of fact that induces someone into entering a contract.