Which of the following constitute(s) a spontaneous financing source? 1. Accounts receivable 2. Accounts payable 3. Inventory 4. Short-term investments
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- Which of the following would be included in the financing section? A. loss on sale of investments B. depreciation expense C. increase in notes receivable D. decrease in notes payableWhat is meant by liquidity? Rank the following assetsfrom one to five in order of liquidity.(a) Goodwill. (d) Short-term investments.(b) Inventory. (e) Accounts receivable.(c) Buildings.Which of the following ratios would a lender find most useful in monitoring a borrower's ability to make loan payments? () PE ratio Return on assets Total asset turnover Inventory turnover () Cash coverage ratio Previous Page Next Page Page 6
- A. 3. What is the line item that appears on a statement of financial position? D. Cost of sales. Dividends paid. Current portion of long-term debt. Increase in cash and equivalents.14. Which of the following would be classified as a financing activity on a statement of cash flows? Sale of a loan receivable Payment of interest to a creditor Payment of a bond payable Declaration and distribution of a stock dividendLiquid assets is determined by Select one: a. Current assets - current liabilities O b. Current liabilities- Bank overdraft c. Current assets +stock+ prepaid expenses O d. Current assets-stock-Prepaid expenses
- The increase of acc. Receivable can be include in Inflow in investing activities O Outflow in operation Inflow in operation. O Inflow in the financing activities.Which of the following is included in the cash flows from financing activities section of the statement of cash flows? O A. Interest received from borrowers.O B. Purchase of stock in another company.O C. Purchase of treasury stock.O D. Interest paid to lenders.When a firm sells its accounts receivable to raiseshort-term cash, it is engaging in a strategycalleda. factoring.b. financial planning.c. equity financingd. debt financing.e. drafting
- Which of the following is not classified among the financing activities in a statement of cash flows? a Long-term borrowing. b Payment of dividends to stockholders. c Short-term borrowing. d Payment of interest to creditors.The purchase of equipment financed by a long-term notes payable is an example of ________. A non-cash investing and financing activity B investing activity C operating activity D financing activityWhich of the following fi nancial statements is generallyprepared fi rst?a. Income statement.b. Balance sheet.c. Statement of retained earnings.d. Statement of cash fl ows.
