ive of long-term financial planning models is to: (3 points) the asset requirements given the investment activities of the firm. a. determine b. plan for contingencies or uncertain events c. determine the external financing needs. d. All of these. asset is one which can be quickly converted into cash without significant loss in value. (3 points) a. current b. fixed c. intangible liquid 3. Which of the following is true of the accrual accounting treatment of a credit sale of goods? (3 points) a Revenues are not recognized until cash payment is received b. Revenue recognition occurs at the time of sale. c. Revenue recognition and cash payment occur simultaneously. d. Cas h payment always exceeds the amount of revenues recognized. 4. Cash flow to stockholders must be positive when: (3 points) a. the dividends paid exceed the net new equity raised b. the net sale of common stock exceeds the amount of dividends paid. c. no income is distributed but new shares of stock are sold. d. both the cash flow to assets and the cash flow to creditors are negative. 5. One of the reasons why cash flow analysis is popular is because: (3 points) a. cash flows are more subjective than net income. b. cash flows are hard to understand. c. it is easy to manipulate, or spin the cash flows. d. it is difficult to manipulate, or spin the cash flows 6. BGL Enterprises increases its operating efficiency such that costs decrease while sales remain constant. As a result, given all else constant, the: (3 points) a. Return on equity will increase b. Return on assets will decrease