Free cash flow is a measure of a firms

Select one:

ability to generate cash and invest in new capital expenditures.

ability to collect accounts receivable in a timely manner.

ability to generate net income.

interest free debt.

Which of the following is not a cash equivalent?

Select one:

IBM common stock

Money?market account

Short?term U.S. Treasury bill

Short?term certificate of deposit

When constructing a common-sized income statement, all amounts are expressed as a percentage of:

Select one:

gross profit

net sales

net income

income from operations

Recognized limitations of financial statement analysis include each of the following except:

Select one:

difficulty of classifying by industry conglomerates.

different levels of profitability between companies.

companies in the same industry using different accounting methods.

inflation.

Financial statement disclosures include each of the following except:

Select one:

supplementary information.

promotional giveaways.

parenthetical disclosures.

notes to the financial statements.