12 Suppose a company generally records revenues and expenses before receiving or making cash payments. Which of the following statements is then true? 2 points Multiple Choice 01:39:35 Net income and cash flows will not always agree because revenues and expenses can be recorded in different time periods than their related cash flows. If sales are falling, net losses could occur even though the company reports net cash inflows from operating activities. All of the answers are acceptable. If sales are rising, net profits could occur even though the company reports net cash outflows from operating activities. Which of the following are used to determine cash flows from financing activities? 8 Multiple Choice points 8 0:38:56 01:38:54 Short-term debt, long-term debt, contributed capital, and retained earnings. Short-term debt, accrued liabilities, retained earnings, and bonds payable. Short-term debt, accrued liabilities, contributed capital, and notes payable. O Long-term debt, notes payable, interest expense, and bonds payable. 9 A lender may limit the ability of a company to pay future dividends in order to ensure that loan proceeds are used for purposes that will increase the company's profits and ability to repay the loans. Which of the following statements is true in this regard? 2 points Multiple Choice 8 01:38:01 All of the answers are acceptable. Such restrictions must be reported in the notes to the financial statements. The circumstance described in the statement is an example of a loan covenant. The lender may require instant repayment of debt if the loan proceeds are instead used to finance the payment of dividends. For a business to be considered a corporation, it must: 11 Multiple Choice 2 points 8 01:37:51 O O all of the answers are acceptable. sell publicly traded shares. be owned by an extremely large number of people. be organized as a separate legal entity. Suppose a company generally records revenues and expenses before receiving or making cash payments. Which of the following statements is then true? Multiple Choice Net income and cash flows will not always agree because revenues and expenses can be recorded in different time periods than their related cash flows. If sales are falling, net losses could occur even though the company reports net cash inflows from operating activities. O All of the answers are acceptable. If sales are rising, net profits could occur even though the company reports net cash outflows from operating activities