Last Year Besset Company's Operations Provided a Negative Cash Flow,yet

question 2

Multiple Choice

Last year Besset Company's operations provided a negative cash flow,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 (GAAP) ?

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

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Definitions:

Measure

A quantitative or qualitative assessment tool used for determining the size, amount, or degree of an object or phenomenon.

Deming's Fourteen Principles

A set of management practices introduced by W. Edwards Deming to promote quality, productivity, and competitive position.

Continuing Inspection

A process of ongoing scrutiny in projects or production to ensure standards are maintained throughout the lifecycle.

Mass Basis

The foundation or support derived from a large segment of the population or sector.