1.Which event describes a non-cash Investing and Financing activity?

a.Payment of a cash dividend.

b.Payment on a Note Payable.

c.Purchase of inventory on account.

d.Issue of Common Stock in exchange for Land

2.Which of the following best describes the use of Liquidity Ratios?

a.overall debt to equity position

b.ability to pay bills when they come due

c.ability to effectively employ its resources

d.overall debt position

3.A company that is leveraged is one that

a.has a strong investment portfolio

b.has a high earnings per share

c.contains debt financing

d.contains equity financing

4Under which section of the statement of cash flows would the retirement of long-term debt with cash appear?

a.Investing activities

b.Operating activities

c.Financing activities

d.Does not represent a cash activity

5Which of the following is not a primary use of the Statement of Cash Flows:

a.determine the financial position of the business

b.evaluate policies involving financing and investing activities

c.assess the liquidity of the business

d.determine dividend policy

6.Which of the following is reported as a noncash investing and financing activity on the statement of cash flows?

a.Purchase of treasury stock

b.Sale of common stock

c.Conversion of bonds payable to stock

d.Payment of a long-term debt