Last Year Besset Company's Operations Provided a Negative Cash Flow,yet

question 2

Multiple Choice

Last year Besset Company's operations provided a negative cash flow,yet the cash shown on its balance sheet increased.Which of the following statements could explain the increase in cash,assuming the company's financial statements were prepared under generally accepted accounting principles (GAAP) ?

• A) The company repurchased some of its common stock.
• B) The company dramatically increased its capital expenditures.
• C) The company retired a large amount of its long-term debt.
• D) The company sold some of its fixed assets.
• E) The company had high depreciation expenses.

---

Definitions:

Positive Punishment

In operant conditioning, a method that involves adding an unfavorable outcome or event following an undesired behavior, intended to decrease the likelihood of the behavior recurring.

Law of Effect

A principle of behavior that states responses followed by satisfaction will become more likely to occur, while those followed by dissatisfaction will become less likely.

Fear

An emotional response to a perceived threat, which serves as a basic survival mechanism by triggering the fight or flight response.

Generalization

The process by which the brain applies learned information from specific instances to similar situations or stimuli.