Which of the Following Could Account for a Firm That

question 31

Multiple Choice

Which of the following could account for a firm that has a negative net income,yet has a positive amount of cash provided by operations?

• A) The net loss was greater than the amount of depreciation expense.
• B) Inventory increased significantly more than accounts payable.
• C) Accounts receivable decreased by significantly more than accounts payable.
• D) The cash balance increased significantly.

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Definitions:

Freudian Stage

A phase in Sigmund Freud's theory of psychosexual development, where each stage is associated with a particular conflict that must be resolved for healthy psychological development.

Older Sister

A female sibling who is born before another child in the same family.

Psychosexual Stage

Stages in Freud's theory during which, according to Freud, the pleasure-seeking energies of the id focus on distinct erogenous zones.

Compulsive Smoker

An individual who experiences an irresistible urge to smoke, leading to an inability to control tobacco use despite the desire to quit.