Question

QUESTION 1 The Cash Flow Cycle includes which of the following activities: A. Setup B. Production C. Sales D. All of the above QUESTION 2 The Pumice Stone Company has the following measurements ready for its Statement of Cash Flows: Beginning Cash Balance $125,300 Acquisitions $400,000 Net cash flow from Operating Activities $297,600 Net cash flow from Investing Activities ($328,400) (negative/use) Net cash flow from Financing Activities $250,000 A. $344,500 B. $232,600 C. $55,700 D. ($205,100) QUESTION 3 Free Cash Flow is defined as: A. A measure of ongoing cash flow from normal business activities (including CapEx) B. A list of dividend payments made to shareholders. C. Any cash flow given as bonus compensation to executives. D. Cash flows raised from debt and equity offerings. QUESTION 4 Capital Expenditures is the amount spent for contract labor used in the business, and reported under Cash for Investing. True False QUESTION 5 Which of the following transactions does NOT lower Cash: A. Paying salaries B. Paying for equipment C. Paying off a loan balance D. Receiving money from investors QUESTION 6 Most small businesses, and all large ones, favor accrual basis books over cash basis books for all of the following reasons EXCEPT: A. They're concerned about the profit margin on products they sell. B. They want to know when they're making money and when they're not. C. Accrual basis accounting always shows a higher profit than cash basis of accounting. D. They're required by lenders, investors or government authorities to report their activities using accrual basis accounting QUESTION 7 The BesTest Sprinkler Company engaged in the following Financing Activities during the year 2020: Issuance of new Debt $10,000,000 Repayment of Debt $7,000,000 Payment of Dividends $750,000 Sale of Stock $2,500,000 What are the Net Borrowings? A. $3,000,000 B. $5,500,000 C. $10,000,000 D. $4,750,000 QUESTION 8 A cash flow statement is basically a reconciliation of the company's purchase log. True False QUESTION 9 The Cash Flow Statement measures "how much money, net of everything else, have I made this year, and how much will I have going forward next year", according to Jack Welch. True False QUESTION 10 Earnings per Share is a more important financial measure than cash flow for private equity firms. True False

QUESTION 1
The Cash Flow Cycle includes which of the following activities:
A. Setup
B. Production
C. Sales
D. All of the above

QUESTION 2
The Pumice Stone Company has the following measurements ready for its Statement of Cash Flows:
Beginning Cash Balance $125,300
Acquisitions $400,000
Net cash flow from Operating Activities $297,600
Net cash flow from Investing Activities ($328,400) (negative/use)
Net cash flow from Financing Activities $250,000
A. $344,500
B. $232,600
C. $55,700
D. ($205,100)

QUESTION 3
Free Cash Flow is defined as:
A. A measure of ongoing cash flow from normal business activities (including CapEx)
B. A list of dividend payments made to shareholders.
C. Any cash flow given as bonus compensation to executives.
D. Cash flows raised from debt and equity offerings.

QUESTION 4
Capital Expenditures is the amount spent for contract labor used in the business, and reported under Cash for Investing.
True
False

QUESTION 5
Which of the following transactions does NOT lower Cash:
A. Paying salaries
B. Paying for equipment
C. Paying off a loan balance
D. Receiving money from investors

QUESTION 6
Most small businesses, and all large ones, favor accrual basis books over cash basis books for all of the following reasons EXCEPT:
A. They're concerned about the profit margin on products they sell.
B. They want to know when they're making money and when they're not.
C. Accrual basis accounting always shows a higher profit than cash basis of accounting.
D. They're required by lenders, investors or government authorities to report their activities using accrual basis accounting

QUESTION 7
The BesTest Sprinkler Company engaged in the following Financing Activities during the year 2020:
Issuance of new Debt $10,000,000
Repayment of Debt $7,000,000
Payment of Dividends $750,000
Sale of Stock $2,500,000
What are the Net Borrowings?
A. $3,000,000
B. $5,500,000
C. $10,000,000
D. $4,750,000

QUESTION 8
A cash flow statement is basically a reconciliation of the company's purchase log.
True
False

QUESTION 9
The Cash Flow Statement measures "how much money, net of everything else, have I made this year, and how much will I have going forward next year", according to Jack Welch.
True
False

QUESTION 10
Earnings per Share is a more important financial measure than cash flow for private equity firms.
True
False

Added by Jose Angel B.

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