Finance Chapter 3 and 4

Inflow to the cash flow statement would be what

• accounts receivable (A/R)

• cash receipts

• accounts payable (A/P)

• investing

Outflows of the cash flow statement would NOT include what

• operating expenses

• investing in other companies and/or bonds

• paying companies that have Accounts Payable accounts set up with

• cash received from sales

Which of the following is NOT an operating cost of the business?

• Accounts Receivable (A/R)

• Cost of goods sold
• Rent for office space
• Employee salaries

Cash Flow Statement will show Long Term Liabilities

• True

• False

The Cash Flow Statement will show the yearly payments of the Long Term Liabilities.

• True

• False

This statement provides a more straightforward report of the cash available.

• Balance Sheet

• Statement of Retained Earnings

• Cash Flow Statement

• Income Statement

What final calculation is easy to manipulate because it includes non-cash line items?

• Total Expenses

• net profit

• net increase in capital

• Total Revenues

In order to generate a positive EVA, a company needs to at least cover what?

• inflation

• cost of goods sold

• long-term liabilities

• operating costs

When figuring out EVA, it accounts for what account on the Balance Sheet?

• intangible assets

• fixed assets

• capital

• liquid assets

This calculation shows the difference between the market value of a company and the capital contributed by the investors.

• Economic Value Added

• Market Value Added

• Statement of Retained Earnings

• Balance Sheet