Test 1 - workshop day

Test 1 - workshop day - 1 Which of the following...

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1. Which of the following transactions does not affect the quick ratio? a. land held for investment is sold for cash b. equipment is purchased and is financed by with long-term debt c. inventories are sold for cash d. inventories are sold on a credit basis e. none of the above 2. Which of the following statements is (are) correct in the context of the Cash Flow Statement? a. a decrease in an asset account denotes a source of cash. b. an increase in an asset account denotes a source of cash. c. an increase in a liability account denotes a source of cash. d. both a and c e. none of the above 9. Holding other things constant, a firm's "discretionary financing need" (the additional funds required in order to finance the firm) would be reduced if the firm experienced an increase in which of the following? a. The profit margin b. The dividend pay-out ratio c. The expected growth rate in sales d. The income tax rate e. The accounts receivable average collection period 11. A company collects 60% of its sales during the month of the sale, 30% one month after the sale, and 10% two months after the sale. The
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This note was uploaded on 10/23/2011 for the course BUS M 301 taught by Professor Jimbrau during the Fall '11 term at BYU.

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Test 1 - workshop day - 1 Which of the following...

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