A Firm's Balance Sheet Shows the Following Changes Over the Most

question 19

Multiple Choice

A firm's balance sheet shows the following changes over the most recent quarter: Cash increases by $1,000,000,long-term assets increase by $3,000,000,accounts payable increase by $750,000,long-term-debt increases by $1,000,000,retained earnings increase by $1,250,000,and new equity increases by $1,000,000.Which of the following statements must be FALSE?

• A)Cash was a $1,000,000 source of funds for the firm.
• B)Long-term debt was a $1,000,000 source of funds for the firm.
• C)The purchase of long-term assets was a use of funds by the firm.
• D)Retained earnings are considered an INTERNAL source of financing.

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Definitions:

Direct Communication

A straightforward and transparent way of speaking or writing where intentions and messages are clearly stated without ambiguity.

Indirect Communication

A conversational style where the message is not expressed directly through words but implied through context or non-verbal cues.

Conflict

A situation where competing or opposing needs, interests, or viewpoints lead to disagreement or dispute.

Negatively Affected

Impacted in an adverse manner, leading to detrimental outcomes or decreases in quality, performance, or well-being.