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.

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Definitions:

Atlantic Ocean

A vast body of salt water that separates the Americas from Europe and Africa.

Island Arc

A curved chain of volcanic islands located at a tectonic plate boundary, typically formed above a subducting plate.

Volcanic Origin

Pertaining to the formation of geological features or materials from volcanic processes.

Island Chains

A series of islands closely spaced in a linear or arc formation, often formed by volcanic activity.