Practice Questions for Chapters 2, 7, 8 and 16 Chapter 2 1.) Neff marketing agency has the following financial activity reported for last year: Cash flow from assets negative $15, interest expense $6; Dividends $10; Repurchased Stock (treasury stock) of $18. Question: What it he cash flow identify for long term debt? 2.) Thompson Financial wants to know what statement below TRUE is about financial statements. a. Taxable income is always higher than Operating Cash Flow b. Operating Cash Flow is always higher than Taxable income C. Depreciation is reported for physical depreciation on the balance sheet. d. None of the above. 3.) The next question from Thompson.what statements below are TRUE about financial statements? a Accounts receivable increases results in higher cash flow b. Accounts receivable is a loan by a Company to its Vendors. c. COGS is included on the balance sheet as an Accounts Payable. 4.) Korn Ferry recently expanded its business for 3 party clients. The Financial Statements at year end report Operating Cash Flow of $100,000; Purchased New Software (Capital) of $12,000; Sold old office furniture $3,500 and Working Capital changed by ($2,000). What is the Cash Flow Identity for Cash Flow From Assets? - 12 ou 4 w20 500 5.) Drucker & Scaccetti are closing out their financial books for the quarter end and report the following: 2018 gross fixed assets of $40,000 vs. $60,000 in 2019; Accumulated Depreciation of $25,000 in 2018 and $35,000 in 2019. What is the change in net capital spending in 2019 $20,000 to Danh Mathor 6.) You are asked in your first staff meeting at Thompson Financial....tell us something... If a tax rate is 40% and depreciation expense is $10,000. a. What is the taxable income? 10000 X(1-.40) bow b. Now does taxable income increase or decrease? dowon C Does cash on the balance sheet increase or decrease? up-010000 x 40-4000 7.) You are interviewing for a job at Macquarie and are asked by a senior partner...tell us something... if a tax rate is 40% and depreciation expense is $10,000... a. What is the taxable income? b. Now does taxable income increase or decrease? C. Does cash on the balance sheet increase or decrease? 8.) Ok so you responded correctly to the above question...now another partner asks you the following: If a client's tax rate is say 40%, an increase in depreciation to $10,000...would cause Taxable income to increase/decrease by S and the clients cash position to increase/decrease by 9.) The hiring manager at Macquarie asks during your interview.. True or False AR is a short term loan made by a company to its customers 10.) Vintun is seeking a forward-thinking energetic Junior to mid-level Supply Chain Analyst to join our team in support of improving Naval Aviation...to get the job you need to answer this question.. 1 Practice Questions for Chapters 2, 7, 8 and 16 Practice Questions for Chapters 2, 7, 8 and 16 Chapter 2 1.) Neff marketing agency has the following financial activity reported for last year: Cash flow from assets negative $15, interest expense $6; Dividends $10; Repurchased Stock (treasury stock) of $18. Question: What it he cash flow identify for long term debt? 2.) Thompson Financial wants to know what statement below TRUE is about financial statements. a. Taxable income is always higher than Operating Cash Flow b. Operating Cash Flow is always higher than Taxable income C. Depreciation is reported for physical depreciation on the balance sheet. d. None of the above. 3.) The next question from Thompson.what statements below are TRUE about financial statements? a Accounts receivable increases results in higher cash flow b. Accounts receivable is a loan by a Company to its Vendors. c. COGS is included on the balance sheet as an Accounts Payable. 4.) Korn Ferry recently expanded its business for 3 party clients. The Financial Statements at year end report Operating Cash Flow of $100,000; Purchased New Software (Capital) of $12,000; Sold old office furniture $3,500 and Working Capital changed by ($2,000). What is the Cash Flow Identity for Cash Flow From Assets? - 12 ou 4 w20 500 5.) Drucker & Scaccetti are closing out their financial books for the quarter end and report the following: 2018 gross fixed assets of $40,000 vs. $60,000 in 2019; Accumulated Depreciation of $25,000 in 2018 and $35,000 in 2019. What is the change in net capital spending in 2019 $20,000 to Danh Mathor 6.) You are asked in your first staff meeting at Thompson Financial....tell us something... If a tax rate is 40% and depreciation expense is $10,000. a. What is the taxable income? 10000 X(1-.40) bow b. Now does taxable income increase or decrease? dowon C Does cash on the balance sheet increase or decrease? up-010000 x 40-4000 7.) You are interviewing for a job at Macquarie and are asked by a senior partner...tell us something... if a tax rate is 40% and depreciation expense is $10,000... a. What is the taxable income? b. Now does taxable income increase or decrease? C. Does cash on the balance sheet increase or decrease? 8.) Ok so you responded correctly to the above question...now another partner asks you the following: If a client's tax rate is say 40%, an increase in depreciation to $10,000...would cause Taxable income to increase/decrease by S and the clients cash position to increase/decrease by 9.) The hiring manager at Macquarie asks during your interview.. True or False AR is a short term loan made by a company to its customers 10.) Vintun is seeking a forward-thinking energetic Junior to mid-level Supply Chain Analyst to join our team in support of improving Naval Aviation...to get the job you need to answer this question.. 1 Practice Questions for Chapters 2, 7, 8 and 16