10. Which of the following might be a cash inflow?

a. increase in Accounts Receivable

b. increase in bank loan

c. increase in value of Machine

d. decrease in Accounts Payable

e. decrease in equity

The average tax rate is defined as the:

a. additional tax due on one more dollar of taxable income.

b. rate applicable to the highest tax bracket relevant to the level of a firms income.

c. total tax paid divided by the total net income of a firm.

d. total tax paid divided by the total taxable income.

e. total tax incurred per dollar of revenue earned.

Jepsen, Inc., has current assets of $3,600, current liabilities of $4,800, and total assets of $17,200. Owners equity is $11,000. What is the value of the long-term debt?

a. $1,400

b. $2,600

c. $5,000

d. $6,200

e. $9,800

Angie is analyzing the potential income and cash flows which she might realize if she adds a new product to her sales lineup. The tax rate relevant to this analysis is the:

a. mean tax rate.

b. total tax rate.

c. average tax rate.

d. marginal tax rate.

e. net tax rate.

An income statement:

a. reveals the net cash flows of a firm over a stated period of time.

b. reflects the financial position of a firm as of a particular date.

c. reflects the revenue, expense and profit of a firm for a period..

d. records sales as the cash from those sales is received.

e. records expenses based on the revenue recognition principle.

The market value of land is equal to the:

a. anticipated selling price if the land were sold today.

b. cost of the land at the time the current owner acquired it.

c. initial cost plus the value of all improvements added.

d. book value as recorded on the latest financial statement.

e. historical cost adjusted for annual depreciation.

Net working capital is defined as the:

a. change in current assets over a stated period of time.

b. amount of money used to acquire new fixed assets minus any asset sales.

c. net change in the cash flow related to the current assets of a firm.

d. difference between a firms current assets and its current liabilities.

e. amount of cash generated by the daily operations that is reinvested in the firm.