1. Consider the following change in the balance sheet account called Accounts Payable from December 31, 2018 when it was $100,000 to December 31, 2019 when it was $130,000. This net change results in which of the following:

Group of answer choices

A negative cash flow of $30,000

A source of cash of $130,000

A use of cash of $100,000

A source of cash of $30,000

A use of cash of $30,000

2. The most important profitability ratio, Return on Equity (ROE), is defined by numbers entirely found on the Balance Sheet.

Group of answer choices

False

True

3. Scott deposited $3,000 today into an account that pays 5 percent interest, compounded annually. Bob also deposited $3,000 this morning at 5 percent interest, compounded annually. Scott will withdraw his interest earnings and spend it as soon as possible. Bob will reinvest his interest earnings into his account. Given this, which one of the following statements is true?

Group of answer choices

Scott will earn compound interest.

Scott will earn more interest in Year 3 than Bob will.

After five years, Scott and Bob will both have earned the same amount of interest.

Bob will earn more interest in Year 1 than Scott will.

Bob will earn more interest in Year 2 than Scott.

4. What is the relationship between the present value and future value interest factors, (the ones that include the time value of money variables)?

Group of answer choices

The present value factor is the exponent of the future value factor.

There is no relationship between these two factors.

The factors are reciprocals of each other.

The present value and future value factors are equal to each other.

The future value factor is the exponent of the present value factor.

5. Italia Foods has beginning current assets of $1,360, beginning current liabilities of $940, ending current assets of $1,720, and ending current liabilities of $1,080. What is the change in net working capital?

Group of answer choices

$190

$220

$1,060

$940

$170