Which of the following represent cash outflows from financing activities? 5 Multiple Choice points 00:46:23 Distributing a stock dividend Paying a bond's face value at maturity Issuing long-term bonds at a discount Paying interest on promissory notes Which of the following would be used to determine the ability of a company to pay dividends and interest on borrowings? 6 Multiple Choice oints or 00.46.04 the income statement the statement of cash flows. the balance sheet management dscussion a d Arons Data from ratio analysis can be: Multiple Choice points compared to particular compettors in the industry. 00:45:38 compared to the company ratio date in previous years. compared to industry averages a ofe eravs all of the answers are acceptable. Which of the following statements about dividends is not true? 2 Multiple Choice 00:4518 Dividends represent a sharing of corporate profits with owners Both stock dividends and cash dividends reduce retained earnings. Cash dividends paid to shareholders reduce net income. Dividends are declared at the discretion of the board of directors Song Sue is a shareholder of Gene Company and receives a 2% stock dividend Song 32 Multiple Choice 2 points 0044 34 Will debit Cosh and credit Dividend Income in her accounting records Will own a lorger percentage of Generous than before Will own the same percentage of Generous as before onty belegally entsed to such dividenda # rGenerous has positive net income that year cate in which of the three categories Gain from the sale of a capital asset should appearand whether it is an inflow or an outflow of 33a Multiple Choice points 2 00 4411 Operatig inow Finencing ino Fnancing outhow Account totals found on a Balance Sheet 35 Multiple Choice 2 points 3 ore) O Represent the cumulative account balances at a point in time Represent o cumulative interim period of trensactions Represent the eccount belances presented on the income stotement Represent the account balances e# found on the cash flow statement Basic rights of common shareholders include which of the following 36 Multiple Choice 2 points 00 43.41 Overseeing the hiring and firing of key management One vote per one share owned Direct appointment of Board of Directors members Preference to receive dividends Dividends in arrears means that Multiple Choice 2 points 0043:24 They were omitted in past years They are related with o set of preferred shares They were issued with a group of preferred shares They are already at the rear implying that they will be considered last when dividends are deciared Which of the following are MOST likely to be interested in calculating and using a company's financial statement ratios? 8 Multiple Choice Long-time employees 0 43.07 Regulators, such as those monitoring IFRS and ASPE complia The tax authorties such as CRA in Canada The bank who provided the company a loan 6 months ago 39 Which of these transactions would result in an increase in a company's current ratio (current assets/current liabilities)? Assume current assets are equal to current liabilities before the transactions below take place Multiple Choice ints 00 4248 declaring a cash dividend issuing long-tem debt making a mortgage peyment When evaluating cash flow deviations from a business the following should be considered: 2 points Multiple Choice 00 42 28 The seasonality & corporate life cycle Changes in the contributed surplus account The debt ratio
