Jackson Company Had a Net Increase in Cash from Operating

question 141

Multiple Choice

Jackson Company had a net increase in cash from operating activities of $10,000 and a net decrease in cash from financing activities of $2,000.If the beginning and ending cash balances for the company were $4,000 and $11,000,then net cash change from investing activities was:

• A)an outflow or decrease of $1,000.
• B)an inflow or increase of $2,000.
• C)an inflow or increase of $1,000.
• D)zero.

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Definitions:

Domestic Inflation

The speed at which the overall price level of goods and services increases, leading to a decrease in the country's purchasing power.

Trade Deficits

A condition in which a nation's expenditures on imported goods and services surpass its earnings from exports, resulting in a trade deficit.

Indebtedness To Foreigners

The total amount of money that a country owes to foreign creditors.

Current Consumption

The purchases of goods and services for immediate use, as opposed to saving or investing for future use.