If a Firm's Cash-Flow Statement Shows That Cash Was Used

question 8

Multiple Choice

If a firm's cash-flow statement shows that cash was used for investments,which of the following would seem most likely?

• A) The inventory balance increased.
• B) Common stock was repurchased.
• C) New machines were acquired.
• D)Cash dividends were paid.

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Definitions:

Small Business Owner

An individual who owns and operates a small business, typically taking on considerable financial risks in the hope of profit.

Holding Costs

The expenses associated with storing inventory, including warehousing, insurance, and depreciation.

Ordering

The process of requesting goods, services, or work to be provided or performed by another party.

Producing

The act of creating, manufacturing, or otherwise bringing into existence goods and services.