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6. A common-size statement of comprehensive Income is defined as a financial statement wherein all items are expressed as a percentage of: a. Their prior

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6. A common-size statement of comprehensive Income is defined as a financial statement wherein all items are expressed as a percentage of: a. Their prior year's value b. Their projected value c. Their 5-year average value d. Sales 7. How does EVA differ from accounting profit? a. Cost of equity capital is added when EVA is calculated b. No charge for the use of equity capital is reflected in accounting profit c. It includes NOPAT d. None of the above 8. How net cash flow differs from accounting profit? a. Shows the change inequity between the balance sheet dates b. Some revenues and expenses reflected in the accounting profits may not have received or paid out in cash during the year c. Accounting profits do not include short-term investments d. Accounting profits do not include long-term 9. What is free cash flow? a. Amount of cash flow remaining after a company makes the asset investments necessary to support operations b. Difference between the total market value of a firm and the total amount of investor-supplied capital c. Net operating profit after taxes d. Current assets that are used to support operations, such as cash, inventory, and accounts receivable

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