1. Which of the following is a source of cash?

A. Issuance of long term debt

B. Increase in inventories

C. Decrease in accounts payable

D. Increase in accounts receivable

E. None of the above

I choose 4 as an increase in accounts receivable is an increase in owners equity. I could be wrong

2. Information that can make a difference to the decision at hand is considered to be

A. Reliable

B. Relevant

C. None of the above

I choose C as Relevance fits the description here not relevant

3. Which ratio is wall streets favorite?

A. Inventory Turnover

B. Receivable Turnover

C. Current

D. Price-Earnings

E. None of the above

I choose D

4. A gain on the sale of an asset is subtracted from net income to determine cash flow from operating activities because of

A. Double Counting

B. Asset Sales requires a basis

C. Loses are cash flow neutral

D. None of the above

I believe that this answer is B. Asset sales requires a basis

5. Which of the following increases cash

A. Issuance of long term debt

B. Acquisition of PPE

C. Payment of dividends

D. Decrease in short term debt

E. None of the above

I guessed E because I believe it comes down to either A or E and that depends on who issued the debt

6. The stock market values a company based on which of the following accounts

A. Assets

B. Liabilities

C. Capital Stock

D. Retained Earnings

E. None of the above

7. AGR Corporation signed a two-year lease for the building that the company occupies. The account that should be debited is

A. Prepaid expenses

B. Cash

C. Accounts Payable

D. Building

E. None of the above

I answered C as the corporation doesnt own the building and its a true lease.

8. Which of the following ratios measures operating performance?

A. Price-Earnings

B. Current

C. Receivable Turnover

D. Operating cycles

E. None of the above

I choose D here.

I know this is a lot so I appreciate the time who ever is taking on this, Thanks in advance!