. ______ 1.Liquidity refers to:

1. How quickly an asset can be sold without experiencing a loss in value and firms ability to pay its creditors.
2. How much cash and near cash the firm has on its Balance Sheet and change to the account through time.
3. How interest rate fluctuations impact the value of the firm and impacts expected cash flows over a holding period of time.

_______2. The Present Value formula used to determine the operating cash flow for 30 days is identical when compared to the present value formula used to value an investment over a period of years.

a. True b. False

_______3. Changes in the Notes Payable account is considered a change in:

1. Cash flow from operations
2. Cash flow from investments
3. Cash flow from financing