Justine Inc

question 60

Multiple Choice

Justine Inc. has the following information available for 2011: The operating activity section of Justine's statement of cash flows would show:

• A) net cash provided by operating activities of $58,000.
• B) net cash utilized by operating activities of $58,000.
• C) net cash utilized by operating activities of $98,000.
• D) net cash provided by operating activities of $98,000.

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Definitions:

Short-Sell

The practice of selling borrowed securities with the aim of buying them back at a lower price in the future to profit from a decline in price.

Maximum Possible Loss

The worst-case scenario loss that an investor or business could experience in their investment or operation.

Initial Margin

Initial Margin is the minimum amount of capital required to enter a position for trading in the securities market.

Borrowed

The act of receiving something with the promise to return it or its equivalent, often referring to funds obtained with the agreement to pay back with interest.