$($Multiple Questionsia$)$ :

$1.$Which cash flow activities more

useful in the statement of cash flows?

a$)$ Cash flows from operating activities

b$)$ Cash flows from investing activities

c$)$ Cash flows from financing activities

d$)$ All of the above

$2.$The company Net Income $$200,000$ and sales are $$4,000,000,$ what is profit margin Ratio?

a$.5\%$

b$.10\%$

c$\mathrm{.}15\%$

d$.20\%$

$3.$A company average annual income is $$40,000$ and Initial investment is$$400,000.$ What is Accounting Rate of Return of the company?

a$)5\%$

b$)10\%$

c$)15\%$

d$)20\%$

$4.$ The company Sales $$4,000,000$ and Accounts Receivable are $$350,000,$

what is receivable turnover?

a$.11\mathrm{.}0$

b$.11\mathrm{.}4$

c$.11\mathrm{.}5$

d$.12\mathrm{.}0$

$5.$ The Internal Rate of Return $($IRR$)$ measures investment profitability of

investments as a return of which percentage?

a$.$ NPV$=0\mathrm{.}5$

b$.$ NPV$=1\mathrm{.}0$

c$.$ NPV$=0$

d$.$ NPV$=1\mathrm{.}5$

Theory Questions:

$1.$ What is advantage of accrual method of statement of cash flow?

$2.$ What is ratio analysis?

$3.$ What is working capital management?

$4.$ What is cash budgeting process in working capital management?

$5.$ What is capital budgeting decision?

$6.$ What is Internal Rate of Return?