1. The best measure of a company\'s ability to generate sufficient cash is cash
ID: 2438134 • Letter: 1
Question
1. The best measure of a company's ability to generate sufficient cash is cash provided by: a. financing activities b. investing activities c. operating aciviies d. processing activities e. None of the above 2. A company's cash flow from investing activities includes a. cash paid for common dividends b. cash received from issuance of common stock c. cash received from sale ofplant equipment. d. cash paid for employee salaries e. Both a and b 3. A company's cash flow from operating activities include:s a. cash paid as dividends b. cash received from issuance of common stock c. cash received from sale of plant equipment. d. cash paid for employee salaries e. Both a andtb 4. A company's cash flow from financing activities includes a. cash paid as dividends b. cash received from issuance of common stock c. cash received from sale of plant equipment. d. cash paid for employee salaries e. Both a and b 5. If accounts receivable decreased during the year, a. revenues on an accrual basis are less than cash collected. b. revenues on an accrual basis are greater than cash collected c. revenues on an accrual basis are the same as cash collected. d. expenses on an accrual basis are greater than expenses on a cash basis. e. None of the above 6. If accounts payable decreased during the year a. b. c. d. e. revenues on an accrual basis are less than cash collected. expenses on an accrual basis are less than cash paid. expenses on an accrual basis are greater than cash paid. expenses on an accrual basis are the same as cash paid. None of the aboveExplanation / Answer
1.
Correct answer is c. Operating activities
The cash provided by the operating activities shows the cash generated by core business activities of the company which indicates the performance of the business.
2.
Correct answer is c. cash received from sale of plant equipment
3.
Correct answer is d. Cash paid for employee salaries
4.
Correct answer is e. both a and b.
5.
Correct answer is a. revenues on accrual basis are less than cash collected
Revenue on accrual basis increases accounts receivable while cash collected decreases account receivables. If increase in account receivables is less than decrease in accounts receivables, there will be net decrease in accounts receivables.
6.
Correct answer is b. expenses on an accrual basis are less than cash paid.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.