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7. Which of the following current assets is most liquid? a. Accounts payables b. Accounts receivables c. Finished goods inventories d. Work in process inventories

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7. Which of the following current assets is most liquid? a. Accounts payables b. Accounts receivables c. Finished goods inventories d. Work in process inventories 8. Which of the following is most consistent with a rise in accounts receivables? Increased net cash flow Increased financing cash flow C. Increased in operating cash flows d. Decrease in operating cash flows 9. Use the following to calculate operating cash flows: Net Income = $100; Depreciation Expense-$30; increase in Inventories =$10; increase in Accounts Receivables=$30 and Decrease in Accounts Payables $5 a. $25 b. $85 C. $130 d. $165 10. The Cash Conversion Cycle is a measure of a firm's liquidity. It is represented by the following statement. a. The amount of common stock and preferred stock that needs to be purchased to finance the accounts payable account on the Balance Sheet. b. The number of days it typically takes to move funds from inventories to accounts receivable and then to cash. c. The amount of long-term debt that needs to be generated to finance a firm's assets. d. Private bank debt associated with notes payable accounts that provides access to credit up to a limit. a. b

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