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Unformatted text preview: MGTN3125 Fall 2010 Dr. Amine khayati Chapter 3 Review Questions 1- The cash generated from a firms normal business activities is referred to as the: a- Cash flow from assets b- Cash flow to shareholders c- Cash flow to creditors d- Operating cash flow 2- The cash flow that is available to distribute to creditors and to stockholders is called: a- Cash flow from assets b- Cash flow to shareholders c- Cash flow to creditors d- Operating cash flow 3- An income statement is a financial statement that: a- reports revenues and expenses exclusive of all non-cash items b- reports the firms performance over a period of time c- reports the current value of shareholders equity d- is based on both accounting data and market value data 4- Liquidity can be defined as: a- Market value of an asset minus its book value and accumulated depreciation b- The ease and speed with which an asset can be converted to cash without substantial loss in value c- Ability of a firm to sell its inventory by offering a promotional discount d- Ability to access the firm cash balances 5- Net working capital is defined as the: a- Net change in current assets and inventory over a certain period of time b- Amount of cash generated from the firm operation over a certain time c- Difference between a firms current assets and its current liabilities d- Total amount of cash invested in money market securities 6- A balance sheet is a financial statement that: a- reflects the market value of a firm as of the statement date b- presents a snapshot of the firms accounting values of assets, liabilities and equity c- reports the cash flows of a firm as of a specified date...
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- Spring '08
- Business, Generally Accepted Accounting Principles