1. Which of the following is not classified as cash flow from financing?
a. Issuance of long-term debt
b. Repurchase of capital stock
c. Payment of dividends
d. Purchase of inventory

2. Which of the following is a cash outflow?
a. Decrease in inventories
b. Decrease in accounts receivable
c. Issue of common shares
d. Decrease in accounts payable

3. Which of the following is not classified as cash flow from operations?
a. Issuance of long-term bonds
b. Sale of goods
c. Purchase of inventories
d. Payment of employee salaries

4. Which of the following is most likely to report non-controlling interest in its balance sheet?
a. A subsidiary firm
b. A firm that controls 20 percent of another firm
c. A firm that controls 80 percent of another firm
d. Government

5. Which of the following is not a current asset?
a. Cash
b. Bonds
c. Inventories
d. Land

6. Capital gains occur in which of the following cases?
a. Selling price of the asset < Initial cost of the asset
b. Selling price of the asset > Initial cost of the asset
c. Selling price of the asset < Ending UCC
d. Selling price of the asset > Ending UCC

7. Which of the following statements is false?
a. Canada operates a progressive personal tax system.
b. When dividends are received, they are preferentially taxed.
c. When interest is earned, it is fully taxable.
d. Ontario residents and Quebec residents pay the same federal and provincial tax.