What Is the Most Likely Conclusion for a Firm Whose

question 32

Multiple Choice

What is the most likely conclusion for a firm whose statement of cash flows shows an increase in cash balances and has negative cash flows from both operations and financing?

• A) The firm has low depreciation expense.
• B) The firm did not pay any dividends.
• C) The firm sold more equipment than it purchased.
• D) The firm has a low interest rate on its debt.

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Definitions:

Parasitism

An interaction between species where one organism (the parasite) lives on or in another organism (the host), causing it harm.

Commensalism

A relationship between two living organisms where one benefits without harming or benefiting the other.

Succession

The process by which the structure of a biological community evolves over time, often following a disturbance.

Mutualism

A type of symbiotic relationship between two different species where both species benefit from the interaction.