You noticed how popular recreational and high school hockey was in the county. There were no hockey supply stores around, so you opened one. Which strategy will actually "kill" your business?

Select an answer:

• opening your business as a storefront at the end of the major strip center in your city
• working with vendors to purchase uniforms and equipment on credit
• offering credit terms to recreational organizations and high schools
• advertising your business to high schools and recreational organizations by word-of-mouth

Which number should you look at first as the "bottom line" in a statement of cash flows?

Select an answer:

• the net cash provided or used by all activities
• the net cash provided or used by operating activities
• the net cash provided or used by financing activities
• the net cash provided or used by investing activities

TechCo was subjected to an accounting rule that did not let the company report its net sales until after its one-year warranty expired. Which income statement would not change when the rules were changed?

Select an answer:

• cash generated by operating activities
• net income from sales of its products
• deferred revenue from sales
• net sales of TechCo's products

With the indirect method of reporting operating cash flows, what is the key estimate?

Select an answer:

• that accounts payable will be paid
• that inventory value will carry forward into future periods
• that accounts receivable will be paid
• that depreciation expense will be predictable

FarmCo is unsure whether or not it should grow rapidly. Which question regarding the importance of operating cash flow should FarmCo's management ask when making its decision?

Select an answer:

• "Can we reduce our accounts payable?"
• "Can we collect on our higher receivables?"
• "Can we find an outside source of financing?"
• "Can we open warehouses closer to our customers?"