operating activities b. Cash flow from investing activities Cash flow from financing activities 39. The acquisition of land solely in exchange for common stock is A noncash transaction that is not reported in the bady of a statement of cash flows A cash transaction and would be reported in the body of a statement of cash flows. A noncash transaction and would be reported in the body of a statement of cash flows d. Only reported if the statement of cash flows is prepared using the direct method. 40. If depreciation expense was understated in a company's financials, the cash tow from aperatins activities presented under the indirect method is mest ikeb Accurately stated. b. Understated Overstated a. 41. Ihe mast important information needed to determine if companies an pay their cuCR.cbationn is she Net income for this year. b. Projected net income for next year. Relationship between current assets and current liabilities d. c Relationship between short-term and long-term liabilities. 42. Which of the following is a measure of liquidity? Working capital b a. Frofit margin Earnings per share d. c Debt to assets ratio 43. Working capital is: a. Current assets less current liabitities. b. Current assets divided by current liabilities c Income divided by average assets. d. Net income divided by net sales A Bouidity ratilo measures the a. Income or operating success of a company over a period of time. b. Ability of a company to survive over a long period of time. c Short-term ability of a company to pay its maturing obligations and to meet unexpected needs for cash. Percentage of total financing provided by creditors d