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.

Question

Quizplus · Accepted Answer

The sale of fixed assets would result in a cash inflow, which could explain the increase in cash despite negative cash flow from operations.

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