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:

Vital Capacity

The maximum amount of air a person can expel from the lungs after a maximum inhalation.

Regular Exercise

Routine physical activity intended to improve or maintain physical fitness and overall health.

Sternocleidomastoid

A prominent neck muscle that extends diagonally across the side of the neck, involved in the rotation and flexion of the head.

Forced Inspiration

The process of taking air into the lungs with the use of accessory respiratory muscles, in addition to the primary muscles, usually under conditions of high demand or respiratory distress.