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Cash flow1

Authored by Mohamed Elrachidy

English

3rd Grade

Used 1+ times

Cash flow1
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5 questions

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1.

MULTIPLE CHOICE QUESTION

1 min • 2 pts

1.       In generating cash flow from operations and secondary sources, for which category below does the company have discretion or an option not to pay out?

a)       Payments to vendors and suppliers

b)       Payments to employees

c)       The payment of interest on senior debt

d)       The payment of dividends to common shareholders

2.

MULTIPLE CHOICE QUESTION

1 min • 2 pts

2.       Companies that have stable, sustainable operating cash flows can

a)       Will more likely expand into risk ventures

b)       Pay out all cash to shareholders regardless of immediate debt obligations

c)       Often meet debt requirements in timely fashion with a cushion

d)       Use the stable cash flows to extinguish all intangible assets on the balance sheet

3.

MULTIPLE CHOICE QUESTION

1 min • 2 pts

3.       Which of the following is not considered a primary source of cash in managing debt obligations?

a)       Proceeds of the sale of a closed Indonesian subsidiary

b)       The sale of advisory services and the ensuing collecting of related fees

c)       The use of cash reserves on the balance sheet after customers pay receivables

d)       The sale of inventory and the ensuing conversion into receivables and then cash

4.

MULTIPLE CHOICE QUESTION

1 min • 2 pts

4.       Which case is the best example of “trapped cash flow”?

a)       The company maintains cash reserves on the balance sheet to pay down short-term liabilities

b)       The company prepays all advertising and marketing costs

c)       The company holds operating cash flow in a foreign subsidiary to reduce tax obligations at the parent

d)       The company holds onto cash that it could pay out to shareholders as dividends

5.

MULTIPLE CHOICE QUESTION

1 min • 2 pts

5.       In the analysis of parent companies, cash flows reported are based, in part, on

a)       The parent company’s debt strategy, devised by the CFO

b)       Cash dividends up-streamed to the parent company

c)       The size of the parent company’s balance sheet

d)       The total of investments in subsidiaries

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