What Happens to a Firm Whose Uses of Cash Exceed

question 71

Multiple Choice

What happens to a firm whose uses of cash exceed its sources of cash during an accounting period?

• A) It has a loss of net working capital.
• B) It declares a net loss on the income statement.
• C) It experiences a decrease in sales.
• D) It experiences a decrease in its cash balance.

---

Definitions:

Political Coalition

An alliance between different political parties or groups for achieving common goals or gaining political power.

Second New Deal

Represents a phase of the New Deal programs put forth by President Franklin Roosevelt in the mid-1930s to combat the Great Depression, focusing on social welfare benefits, stricter controls over business, labor rights, and rural improvement.

Economic Security

The state of possessing a consistent income or other means to maintain a current lifestyle and anticipate similar stability moving forward.

Federal Government

The national government of a federal country, where powers are divided between the central authority and constituent political units, such as states or provinces.