If Cash Increases During a Year, It Must Mean That

question 4

Multiple Choice

If cash increases during a year, it must mean that:

• A) There was positive profit on the income statement.
• B) Retained earnings increased.
• C) The net worth of a company increased.
• D) None of the three statements above must necessarily be true.

Comprehend the use of radioactive isotopes in medical diagnostics.

Grasp the fundamentals of energy conversion in humans and the role of nutrients.

Recognize the types of reactions involved in macromolecule synthesis.

Identify the various types of lipids and their roles in biological systems.

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Definitions:

Statement of Cash Flows

A financial report that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.

Transactions

Economic events that affect a business's financial position, involving the transfer of assets, provision of services, or incurring of obligations.

Merchandise Inventory

Products that a retailer, wholesaler, or distributor has on hand to sell to customers.

Cash Effect

The impact of any transaction on a company's cash and cash equivalents, indicating how the transaction alters the company's liquidity.