If $10,000 Was Generated from Operations (Indirect Method);$4,000 Was Used

question 82

Multiple Choice

If $10,000 was generated from operations (indirect method) ;$4,000 was used for investing activities;and $6,000 was generated from financing activities,the cash balance:

• A)increased by $6,000.
• B)increased by $8,000.
• C)increased by $12,000.
• D)decreased by $20,000.

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Definitions:

Entrepreneurs

Individuals who innovate, create, and manage new businesses, taking on financial risks in the hope of profit.

Prudent Risk Management

The process of identifying, assessing, and prioritizing risks followed by coordinated application of resources to minimize, monitor, and control the probability or impact of unforeseen events.

Wage, Rent

Wage refers to the payment to labor for its contribution to production, while rent is the payment for the use of land or property.

Entrepreneurial Ability

The human resource that combines the other economic resources of land, labor, and capital to produce new products or make innovations in the production of existing products; provided by entrepreneurs.