A Business Entity Generates a Cash Flow from Operations of 500

question 7

Multiple Choice

A business entity generates a cash flow from operations of 500 in X1,600 in X2 and 700 in X3.The cash outflow from investing is 250 in X1,350 in X2 and 450 in X3.Cash outflow from financing is 150 in X1,-300 in X2 and 900 in X3.Which of the four alternatives below is coherent with these facts and these facts alone.

• A) The entity increased its profit by 40% over the three years.
• B) The entity divested more than it invested.
• C) The entity borrowed more than it reimbursed.
• D) The opening cash balance in X1 is equal to the closing cash balance in X3.

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Definitions:

Recognition

The ability to identify previously encountered information, stimuli, or events.

Savings

The allocation of money that is not spent on consumption in order to be used for future expenses or investments.

Relearn

The process of learning material or skills that one had learned previously but has forgotten or lost proficiency in.

Implicit Memory

A kind of enduring memory that allows us to execute activities without the active realization of past encounters.