If a Firm's Net Income Is Positive and Its Noncash

question 8

Multiple Choice

If a firm's net income is positive and its noncash expenses are positive,which of the following could account for a negative amount of cash provided by operations?

• A) Current assets decrease more than current liabilities decrease.
• B) Current assets increase more than current liabilities increase.
• C) Current assets decrease more than current liabilities increase.
• D) A large addition is made to plant and equipment.

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