Analysis Reveals That a Company Had a Net Decrease in Cash

question 38

Multiple Choice

Analysis reveals that a company had a net decrease in cash of $4,000 for the current year. Net cash provided by operating activities was $18,000; net cash used in investing activities was $10,000 and net cash used in financing activities was $12,000. If the year-end cash balance is $21,000, the beginning cash balance was:

• A) $3,000.
• B) $7,000.
• C) $17,000.
• D) $25,000.
• E) $39,000.

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Definitions:

Confidence interval

An extent of values, obtained via sample statistical analysis, seen as likely embracing the unknown value of a population attribute.

Random sample

A subset of individuals chosen from a larger set where each member has an equal chance of being selected.

Population proportion

The proportion of a specific group or characteristic within a defined population.

Margin of error

An indicator of the precision of an estimate, representing the range within which the true population parameter is expected to lie with a certain confidence level.