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Are All Decreases to Cash the Result of an Unfavorable

Question 34

Multiple Choice

Are all decreases to cash the result of an unfavorable situation?


A) Yes, decreases to cash are always bad.
B) No, cash could decrease as a result of acquiring long-term assets which the company needs to expand or stay competitive.
C) Yes, cash could decrease as a result of paying off long-term debt which is an unfavorable action to take.
D) No, cash could decrease because the company issued more stock.

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