Question
2 Which of the following statements is true? Select one: a For an entity to survive, the net cash flow from financing activities should be
2 Which of the following statements is true?
Select one:
a For an entity to survive, the net cash flow from financing activities should be positive.
b For an entity to survive, the net cash flow from operating activities should be positive.
c For an entity to survive, the net cash flow from operating activities should be negative.
d For an entity to survive, the net cash flow from investing activities should be positive.
3 Accepting a special order will require consideration of such factors as:
Select one:
a All of the options should be considered.
b Reactions of existing customers who are paying a higher price for the product.
c Whether there is available capacity.
d If there a possibility of developing a long term relationship with the customer.
4 The days debtors ratio indicates:
Select one:
a an entity's efficiency in paying back its borrowings.
b the average length of time it takes an entity to pay its account payable.
c an entity's efficiency in raising capital.
d the average length of time it takes an entity to collect its accounts receivable.
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