A Net Increase in Cash and Equivalents from the 2002

question 13

Multiple Choice

A net increase in cash and equivalents from the 2002 statement of cash flows is equivalent to

• A)the cash generated by operations for 2002
• B)the change in cash and equivalents from 2001 to 2002 balance sheets
• C)the change in retained earnings balances from 2001 to 2002 balance sheets
• D)the net cash provided in 2002 by external funds

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Definitions:

Maturity Date

The specified date on which the principal amount of a bond, loan, or other financial instrument is due to be paid in full.

Maturity Value

The amount payable to the investor at the end of a debt instrument's life, including principal and any remaining interest.

Interest

The cost of using borrowed money or the return on invested funds, typically expressed as an annual percentage of the principal.

Purchased Equipment

Fixed assets bought for operational purposes, such as machinery or office fixtures.