Question 2a) The financial markets are comprised of the "money" and capital" markets, stocks and bonds are examples of "money" market instruments and are generally considered to be safe from a risk perspective.

	True
	False

Question 2b)

The cash conversion cycle is best described as:

	the process of selling the product
	the process of converting product into cash and then cash into more product

	the process of collecting cash for sales
	the process of investing cash into new product inputs

Question 2c)

The statement of cash flow is divided into the following sections:

	Operating activities and investing activities
	Operating activities, financing activities, and equity activities

	Operating activities; investing activities, and equity activities
	Operating activities, financing activities; and investing activities

Question 2d)

If a firm has no debt, then ROA is ____ ROE.

	less than
	equal to

	greater than
	not comparable to

Question 2e)

Cash flow from operating activities is increased by:

	depreciation and amortization
	a decrease in accounts receivable

	a decrease in inventory
	an increase in accounts payable

all of the above

Question 2f)

In which problem which we have reviewed so far did the firm have a problem with the increase in receivables and inventory outstripped the growth in revenue?

	Sussman
	Meier

	Walgreens
	Waterford