Question 1 (1 point)

If a company prepares an Indirect Method Statement of Cash Flows, which of the following items is not a proper adjustment to net income to arrive at cash flow from operating activities:

Question 1 options:

	Subtracting Stock Compensation Expense
	Adding a decrease in Accounts Receivable
	Adding Bad Debt Expense
	Subtracting Gains from Sales of Investments

Question 2 (1 point)

Cash outflows related to dividend payments will appear in the ___________ section on the Statement of Cash Flows.

Question 2 options:

	Financing
	Investing
	Operating

Question 3 (1 point)

If a company reports a 5% profit margin percentage, this means that the company is earning 5 cents of profit per dollar of sales.

Question 3 options:

	True
	False

Question 4 (1 point)

Most U.S. companies provide a Direct Method Statement of Cash Flows.

Question 4 options:

	True
	False

Question 5 (1 point)

It is possible for a company's Quick Ratio to be higher than its Current Ratio.

Question 5 options:

	True
	False

Question 6 (1 point)

If Company A has a PE ratio of 20 and Company B has a PE ratio of 80, investors expect Company A to grow more in the future than Company B.

Question 6 options:

	True
	False

Question 7 (1 point)

Holden Company reports Interest Expense of $325,000 on its 2020 Income Statement. Holden's Balance Sheet shows Interest Payable of $30,000 as of 12/31/20 and $50,000 as of 12/31/19. How much Cash did Holden pay for interest in 2020?

Question 7 options:

	$345,000
	$405,000
	$305,000
	$325,000

Question 8 (1 point)

Cash inflows from sales of investments will appear in the ___________ section on the Statement of Cash Flows.

Question 8 options:

	Investing
	Operating
	Financing

Question 9 (1 point)

Holden Company reports Interest Expense of $325,000 on its 2020 Income Statement. Holden's Balance Sheet does not show balances for Interest Payable or Prepaid Interest. How much Cash did Holden pay for interest in 2020?

Question 9 options:

	$350,000
	$325,000
	$0
	$300,000

Question 10 (1 point)

Harbinger Corporation reports the following balances:

		As of 12/31/20		As of 12/31/19
Accounts Receivable (Gross)		70,000		80,000
Inventory		140,000		160,000
Accounts Payable		135,000		165,000
Unearned Revenue		55,000		45,000
		Year ended 12/31/20		Year ended 12/31/19
Sales		500,000		470,000
Cost of Goods Sold		230,000		220,000

How much Cash did Harbinger collect from customers in 2020?

Question 10 options:

	$520,000
	$500,000
	$480,000
	$510,000

Question 11 (1 point)

Cash outflows related to employee wages be reflected as part of __________ on the Statement of Cash Flows.

Question 11 options:

	Net cash provided by/(used in) INVESTING activities
	Net cash provided by/(used in) FINANCING activities
	Net cash provided by/(used in) OPERATING activities

Question 12 (1 point)

Harbinger Corporation reports the following balances:

		As of 12/31/20		As of 12/31/19
Accounts Receivable (Gross)		70,000		80,000
Inventory		140,000		160,000
Accounts Payable		135,000		165,000
Unearned Revenue		55,000		45,000
		Year ended 12/31/20		Year ended 12/31/19
Sales		500,000		470,000
Cost of Goods Sold		230,000		220,000

How much Cash did Harbinger pay for inventory in 2020?

Question 12 options:

	$250,000
	$230,000
	$220,000
	$240,000