Dow Construction Company Reports a Net Use of Cash for Investing

question 40

Multiple Choice

Dow Construction Company reports a net use of cash for investing activities of $1.2 million and a net source of cash provided by financing of $.8 million.What was the effect on the cash balance?

• A)To cause the balance to increase by $.8 million.
• B)To cause the balance to decrease by $.4 million.
• C)To cause the balance to increase by $.4 million.
• D)Undeterminable because the beginning cash balance was not given.

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Definitions:

Institutionalized Means

Established procedures and methods within societies and organizations that dictate how goals should be achieved.

High Success Goals

Objectives or ambitions that are set at very lofty standards, sometimes leading to pressure, stress, or unethical behavior in pursuit of these outcomes.

Anomie-Strain Theory

A sociological theory that views deviance as the result of the gap between societal goals and the legitimate means available to achieve those goals.

Breakdown of Social Norms

A situation in which traditional rules and standards of behavior are ignored or violated by a significant portion of the community, often leading to social chaos or disorder.