Financial Statements,Taxes,and Cash Flow

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Question 1

Free

Multiple Choice

Which one of the following is the financial statement that shows the accounting value of a firm's equity as of a particular date?

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income statement

creditor's statement

balance sheet

statement of cash flows

dividend statement

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Question 2

Free

Multiple Choice

Net working capital is defined as:

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total liabilities minus shareholders' equity.

current liabilities minus shareholders' equity.

fixed assets minus long-term liabilities.

total assets minus total liabilities.

current assets minus current liabilities.

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Question 3

Free

Multiple Choice

The common set of standards and procedures by which audited financial statements are prepared is known as the:

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matching principle.

cash flow identity.

Generally Accepted Accounting Principles.

Financial Accounting Reporting Principles.

Standard Accounting Value Guidelines.

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Question 4

Free

Multiple Choice

Which one of the following is the financial statement that summarizes a firm's revenue and expenses over a period of time?

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income statement

balance sheet

statement of cash flows

tax reconciliation statement

market value report

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Question 5

Free

Multiple Choice

Noncash items refer to:

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accrued expenses.

inventory items purchased using credit.

the ownership of intangible assets such as patents.

expenses which do not directly affect cash flows.

sales which are made using store credit.

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Question 6

Multiple Choice

The percentage of the next dollar you earn that must be paid in taxes is referred to as the _____ tax rate.

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mean

residual

total

average

marginal

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Question 7

Multiple Choice

The _____ tax rate is equal to total taxes divided by total taxable income.

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deductible

residual

total

average

marginal

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Question 8

Multiple Choice

The cash flow of a firm which is available for distribution to the firm's creditors and stockholders is called the:

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operating cash flow.

net capital spending.

net working capital.

cash flow from assets.

cash flow to stockholders.

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Question 9

Multiple Choice

Which term relates to the cash flow which results from a firm's ongoing,normal business activities?

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operating cash flow

capital spending

net working capital

cash flow from assets

cash flow to creditors

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Question 10

Multiple Choice

Cash flow from assets is also known as the firm's:

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capital structure.

equity structure.

hidden cash flow.

free cash flow.

historical cash flow.

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Question 11

Multiple Choice

The cash flow related to interest payments less any net new borrowing is called the:

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operating cash flow.

capital spending cash flow.

net working capital.

cash flow from assets.

cash flow to creditors.

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Question 12

Multiple Choice

Cash flow to stockholders is defined as:

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the total amount of interest and dividends paid during the past year.

the change in total equity over the past year.

cash flow from assets plus the cash flow to creditors.

operating cash flow minus the cash flow to creditors.

dividend payments less net new equity raised.

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Question 13

Multiple Choice

Which one of the following is classified as an intangible fixed asset?

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accounts receivable

production equipment

building

trademark

inventory

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Question 14

Multiple Choice

Which of the following are current assets?
I)patent
II)inventory
III)accounts payable
IV)cash

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I and III only

II and IV only

I, II, and IV only

I, II and IV only

II, III, and IV only

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Question 15

Multiple Choice

Which one of the following is included in a firm's market value but yet is excluded from the firm's accounting value?

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real estate investment

good reputation of the company

equipment owned by the firm

money due from a customer

an item held by the firm for future sale

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Question 16

Multiple Choice

Which of the following are included in current liabilities?
I)note payable to a supplier in eight months
II)amount due from a customer next month
III)account payable to a supplier that is due next week
IV)loan payable to the bank in fourteen months

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I and III only

II and III only

I, II, and III only

I, III, and IV only

I, II, III, and IV

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Question 17

Multiple Choice

Which one of the following will increase the value of a firm's net working capital?

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using cash to pay a supplier

depreciating an asset

collecting an accounts receivable

purchasing inventory on credit

selling inventory at a profit

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Question 18

Multiple Choice

Which one of the following statements concerning net working capital is correct?

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Net working capital increases when inventory is purchased with cash.

Net working capital must be a positive value.

Total assets must increase if net working capital increases.

A decrease in the cash balance may or may not decrease net working capital.

Net working capital is the amount of cash a firm currently has available for spending.

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Question 19

Multiple Choice

Which one of the following statements concerning net working capital is correct?

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The lower the value of net working capital the greater the ability of a firm to meet its current obligations.

An increase in net working capital must also increase current assets.

Net working capital increases when inventory is sold for cash at a profit.

Firms with equal amounts of net working capital are also equally liquid.

Net working capital is a part of the operating cash flow.

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Question 20

Multiple Choice

Which one of the following accounts is the most liquid?

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inventory

building

accounts receivable

equipment

land

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Which one of the following is the financial statement that shows the accounting value of a firm's equity as of a particular date?

Net working capital is defined as:

The common set of standards and procedures by which audited financial statements are prepared is known as the:

Which one of the following is the financial statement that summarizes a firm's revenue and expenses over a period of time?

Noncash items refer to:

The percentage of the next dollar you earn that must be paid in taxes is referred to as the _____ tax rate.

The _____ tax rate is equal to total taxes divided by total taxable income.

The cash flow of a firm which is available for distribution to the firm's creditors and stockholders is called the:

Which term relates to the cash flow which results from a firm's ongoing,normal business activities?

Cash flow from assets is also known as the firm's:

The cash flow related to interest payments less any net new borrowing is called the:

Cash flow to stockholders is defined as:

Which one of the following is classified as an intangible fixed asset?

Which of the following are current assets?I)patentII)inventoryIII)accounts payableIV)cash

Which one of the following is included in a firm's market value but yet is excluded from the firm's accounting value?

Which of the following are included in current liabilities?I)note payable to a supplier in eight monthsII)amount due from a customer next monthIII)account payable to a supplier that is due next weekIV)loan payable to the bank in fourteen months

Which one of the following will increase the value of a firm's net working capital?

Which one of the following statements concerning net working capital is correct?

Which one of the following statements concerning net working capital is correct?

Which one of the following accounts is the most liquid?

Which of the following are current assets?
I)patent
II)inventory
III)accounts payable
IV)cash

Which of the following are included in current liabilities?
I)note payable to a supplier in eight months
II)amount due from a customer next month
III)account payable to a supplier that is due next week
IV)loan payable to the bank in fourteen months