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Are All Increases to Cash from Financing Activities the Result

Question 30

Multiple Choice

Are all increases to cash from financing activities the result of a favorable situation?


A) Yes,an increase to cash is always good.
B) No,cash could increase in this category as a result of replacing long-term assets.
C) Yes,this increase would reflect the results of the company's daily activities.
D) No,although some increases in this category could be positive,some,such as an increase in long-term debt might be the result of an unfavorable situation.

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