Question
1.Which of the following would be an example of an investing activity on the Statement of Cash Flows? a.issuance of bonds payable b.purchase of bonds
1.Which of the following would be an example of an investing activity on the Statement of Cash Flows?
a.issuance of bonds payable
b.purchase of bonds as an investment
c.issuance of common shares
d.collection of rent from tenants
2.Information on a companys cash flows is used for all of the following, except
a.assess the companys ability to repay debt in the future.
b.evaluate the potential for the company to be able to pay dividends in the future.
c.evaluate a companys liquidity (i.e., the value of a companys liquid assets in comparison to its short-term debt obligations).
d.estimate the companys future cash requirements.
3.The cash flows to total liabilities ratio measures
a.the percentage of a companys current liabilities that could be met with one years investing cash flows.
b.the percentage of a companys long-term liabilities that could be met with one years operating cash flows.
c.the percentage of a companys total liabilities that could be met with one years operating cash flows.
d.the percentage of a companys current liabilities that could be met with one years financing cash flows.
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