If $10,000 Was Generated from Operations, $1,000 Was Used for Investing

question 6

Multiple Choice

If $10,000 was generated from operations, $1,000 was used for investing activities and $7,000 was generated from financing activities, the cash balance must have increased by:

• A)$7,000.
• B)$4,000.
• C)$16,000.
• D)$18,000.

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Definitions:

Short-Term Projects

Initiatives or tasks that are expected to be completed or yield results within a relatively brief period, typically less than one year.

Risk Level

An indicator of the level of risk and possible monetary loss associated with making an investment choice.

Payback

The period of time required for the return on an investment to "repay" the sum of the original investment.

Time Value of Money

The theory that current money holds more value than equal amounts in the future because of the earnings it could potentially produce.