Which of the following statements is more likely if cash and marketable securities increase by $5,000 during a period in which cash provided by operations increases by $1,000 and cash used by investments decreases by $500?

Question

Quizplus · Accepted Answer

The increase in cash and marketable securities by $5,000, with only $1,500 explained by operations and investments (increase of $1,000 from operations and decrease of $500 in investments used), suggests additional cash inflows. Option C, indicating debt increases more than cash dividends paid, could account for the unexplained increase, as it implies additional financing activities contributing to the cash increase.

Which of the Following Statements Is More Likely If Cash