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A Moving to the next question prevents changes to this answer. Question 18 Lincoln Company reported the following information in its annual report for 2017: Cash flows from operating activities Capital expenditures Average amount of debt maturing over the next 5 years $300,000 225.000 200.000 What is the cash flow adequacy ratio for 2017 for Lincoln Company? a. 7.50 b. 1.88 OC. 0.38 d. 1.50 Inventones and prepaid assets are excluded from the numerator used to compute the quick ratio True False A Moving to the next question prevents changes to this answer Question 4 of 50 Question 5 2 points Save An If two companies in the same industry use different methods to value inventory, this makes comparisons more difficult but not impossible True False 2 points Save Anne fi Read the information about Moore Industries. The company's dividends for the year are part of Moore Industries' operating costs Co reduce the amount of capital stock reported by the company co are reported on the statement of retained earnings th rec are an expense of Moore Industries Ho con Wh Which one of the following statements is true? Investing activities involve the selling of products or services and the incurring of expenses related to selling these products and services Financing activities involve the acquisition of property, plant and equipment. Borrowed funds are a more permanent source of financing than funds invested by owners The two primary sources of financing available to corporations are borrowed funds and funds invested by owners Under current accounting principles, how is net income on the income statement measured? oa. Net change in the cash balance during the period b. Excess of revenues over expenses during the period c.Net change in owners' equity during the period d. Excess of revenues over expenses less any dividends paid during the period Moving to the next question prevents changes to this answer. Question 14 of 50 Question 14 2 points Save Answer Jones, Inc., a manufacturer of tires, has given you its most recent annual report in an effort to obtain a sizable loan. The company is very profitable and appears to have a sound financial position. Based on a report presented on prime time television last night, you are aware that Jones is a defendant in several lawsuits related to its defective tires that cause vehicles to overturn. The information presented on television is an example of financial information that is comparable Consistent O predictable relevant 2 points Save Answer The SEC created the objectives of financial reporting True False Question 17 2 points Save The time period assumption assumes a company prepares financial statements every month O True False