a. One major purpose of the statement of cash flows is to provide information about. the firm's cash receipts and payments during a period. the
a. One major purpose of the statement of cash flows is to provide information about.
| | the firm's cash receipts and payments during a period. |
| | the firm's profitability. |
| | the firm's resources and claims against those resources. |
| | changes in retained earnings. |
b. Cash provided by operating activities
| | may be larger than net income. |
| | equals the change in cash for the year. |
| | summarizes cash flows relating to the purchase and sale of long-lived assets. |
| | decreases when long-term debt is repaid. |
c. Which of the following statements is true?
| | High asset turnover is a sign of efficient use of assets. |
| | The price-earnings ratio is a long-term solvency ratio. |
| | The payout ratio measures the profitability of the owners' investment. |
| | The acid-test ratio applies to manufacturing companies, but not to service or retailing businesses. |
d. For which of the following is a low ratio an indicator of good financial health?
| | Debt to total assets ratio |
e. Which item is not reported on the income statement?
| | Unrealized gain on available-for-sale securities |
| | Extraordinary loss due to a volcano eruption damage |
| | Gain from the disposal of a division |
