1.

Which of the following is a non-cash expense?

Multiple Choice

• Cost of Goods Sold.

• Salaries.

• Office Supplies.

• Depreciation.

• Interest expense.

2,

Which of the following about Liquidity is True?

Multiple Choice

• It's a measure of a company's fixed assets in relation to its long-term debt.

• An asset can be considered liquid if it can be turned into cash within 4 weeks even if doing so causes it to be sold significantly below its fair value.

• A liquid asset is one that can be turned into cash quickly and without a significant loss in value.

• The most liquid assets are those that can be sold at the highest prices.

3.

Which of the following is true about debt?

Multiple Choice

• It is known as "leverage", which increases the power of a firm's resorces, acting as a "lever" to help the firm achieve something it otherwise might be able to do.

• It can magnify potential gains and losses.

• It often increases potential risk as well as potential reward.

• A, B, and C above are all True.

• Only A and B above are True.

4.

Which of the following is the correct formula for calculating Cash Flow to Creditors?

Multiple Choice

• Interest Paid - Net Working Capital.

• Interest Paid - Net New Borrowing.

• Dividends Paid - Net New Borrowing,

• Dividends Paid - Net New Equity

• Net Income + Depreciation.