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A cash inflow from financing activities includes: receipt of interest payments. proceeds from selling equipment. proceeds from issuance of bonds payable. proceeds from selling investments
- A cash inflow from financing activities includes:
- receipt of interest payments.
- proceeds from selling equipment.
- proceeds from issuance of bonds payable.
- proceeds from selling investments in equity securities of another company.
- All of the following are correct regarding operating leases except:
- Cash outflow is in the form of rent payments
- The rights to use the property for a specified period of time are conferred to the lessee by the lessor.
- At the end of the lease the lessee returns the property to the lessor
- Depreciation expense can be recorded on the books by the lessee
- Asset turnover represents:
- The ability of the firm to generate income from operations for a particular level of sales.
- The ability to generate sales from a particular investment in assets.
- The ability to manage the level of investment in assets for a particular level of assets.
- The number of days, on average, it takes management to turnover assets.
- Goodwill represents:
- the synergies that will be achieved through the acquisition.
- the difference between the acquisition cost and the market value of the identifiable assets and liabilities.
- the difference between the acquisition cost and the book value of the identifiable assets and liabilities.
- the merger premium.
- Income or loss from discontinued operations would best be regarded by an analyst as: a. sustainable earnings.
- impairments.
- transitory earnings.
- permanent earnings.
- Net income is equal to:
- Assets minus Liabilities
- Revenues and Gains minus Expenses and Losses
- Shareholders Equity minus Assets
- Revenues and Assets minus Expenses and Liabilities
- Reporting financial assets and liabilities at fair values also is referred to as: a. historical cost.
- acquisition cost.
- mark-to-market.
- mortgage-backed cost
- Under the indirect method of preparing the statement of cash flows, add backs to net income include all of the following except: a. depreciation expense
- deferred tax expense
- gains on sale of equipment
- share-based compensation
- When a firm sells a trading security, it recognizes:
- the average of the selling price and the book value as a gain or loss in measuring net income.
- the difference between the selling price and the book value as a gain or loss in measuring net income.
- amortizes any difference between the acquisition cost and maturity value as interest revenue over the life of the debt.
- the difference between the selling price and the acquisition cost of the security as a realized gain or loss on the income statement.
- Which of the following is not an activity reported in the Statement of cash Flows?
- Operating
- Investing
- Manufacturing
d.Financing
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