6. Which of the following are three major activities that statement of cash flow reports? a. Investing, operating and managing b. Operating, organizing and leading c. Operating, investing and financing d. Operating, organizing and controlling

7. Assets turnover ratio is calculated; a. Total assets / total Equity b. Total assets/ cost of goods sold c. Net operating assets / sales d. Sales/ Net Operating Assets

8. Net income less preferred dividends divided by average common equity is the formula for calculating a. Earnings per share b. Return on common equity c. Price to earnings ratio d. None of the above

9. The correct order of the projection process of financial statements is: a. Cash flow statement>Income statement> Balance sheet b. Income statement>Balance sheet> Cash flow statement c. Balance sheet> Income Statement> Cash flow statement d. Income statement>Cash flow statement>Balance Sheet

10. What will be impact of writing off $5,000 of accounts receivable to allowance for doubtful accounts if the companys account receivable turnover is 4. a. Increase b. Decrease c. No change d. The information is not enough to answer