If $12,000 Was Generated from Operations,$6,000 Was Used for Investing

question 67

Multiple Choice

If $12,000 was generated from operations,$6,000 was used for investing activities,and $4,000 was provided by financing activities,the cash balance would:

• A)increase by $14,000.
• B)decrease by $20,000.
• C)increase by $10,000.
• D)increase by $2,000.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, giving shareholders voting rights and a share in profits.

Retained Earnings

The portion of a company's profits that is held back and not distributed to shareholders, reinvested in the business.

Net Income

The net income a company earns once all costs and taxes are subtracted from its total revenues.

Dividend

A portion of a company's earnings distributed to its shareholders, typically paid out in cash or additional shares of stock.