Question 1:

All of the following are reasons that a company may buy-back shares, except:

a) If it needs the shares for its employees share bonus program

b) if the company decides to increase its long term investments

c) To buy out the ownership of shareholders

d) To increase the reported amount of earnings per share

Question 2:

The information in the statement of cash flows helps investors, creditors and others do all of the following except:

a) Estimate the company's needs for external financing

b) Show the inflows and outflow of total comprehensive income on the accrual basis

c) Assess a company's ability to produce future cash inflows

d) Judge a company's ability to meet its obligations and pay dividends