Jessie's Bobcat Rentals' Operations Provided a Negative Net Cash Flow

question 11

Multiple Choice

Jessie's Bobcat Rentals' operations provided a negative net cash flow last year, yet the cash shown on its balance sheet increased.Which of the following statements could explain the increase in cash, assuming the company's financial statements were prepared under generally accepted accounting principles?

• A) The company had high depreciation expenses.
• B) The company repurchased some of its common stock.
• C) The company dramatically increased its capital expenditures.
• D) The company retired a large amount of its long-term debt.
• E) The company sold some of its fixed assets.

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Definitions:

Intellectual Abilities

Refers to the mental capacities that allow individuals to learn, reason, solve problems, and adapt to new situations.

Arithmetic

A branch of mathematics dealing with the properties and manipulation of numbers.

Jean Piaget

A Swiss psychologist known for his pioneering work in child development, particularly his theory of cognitive development that describes how children construct a mental model of the world.

Developmental Stage

A period in an individual's life characterized by distinct and typical patterns of behavior and psychological development.