Finance Topic 2 Question

PART A |

| |

1. | General accepted accounting principles are authorized by |

| | |

| A. | IFSB |

| B. | CFA |

| C. | FASB |

| D. | MDDC |

| | |

| | |

2. | Agency problems happen between |

| | |

| A. | Board of directors and CEO |

| B. | Owners and Manager |

| C. | Human Resource and Stockholders |

| D. | A and B only |

| | |

| | |

3. | The sources and uses of cash over a stated period of time are reflected on the: |

| | |

| A. | Income statement. |

| B. | Balance sheet. |

| C. | Tax reconciliation statement. |

| D. | Statement of cash flows. |

| | |

| | |

4. | Relationships determined from a firm's financial information and used for comparison purposes are known as:  |

| | |

| A. | Financial ratios. |

| B. | Identities. |

| C. | Dimensional analysis. |

| D. | Scenario analysis. |

| | |

| | |

5. | Which one of the following is a source of cash?  |

| | |

| A. | Increase in accounts receivable |

| B. | Decrease in notes payable |

| C. | Decrease in common stock |

| D. | Increase in accounts payable |

| | |

6. | On the Statement of Cash Flows, which of the following are considered financing activities? I. increase in long-term debt II. decrease in accounts payable III. interest paid IV. dividends paid  |

| A. | I and IV only |

| B. | III and IV only |

| C. | II and III only |

| D. | I, III, and IV only |

| | |

| | |

7. | On the Statement of Cash Flows, which of the following are considered operating activities?

I. costs of goods sold II. decrease in accounts payable III. interest paid IV. dividends paid  |

| | |

| A. | I and III only |

| B. | III and IV only |

| C. | I, II, and III only |

| D. |  I, III, and IV only |

| | |

| | |

8. | According to the Statement of Cash Flows, a decrease in accounts receivable will _____ the cash flow from _____...