1. Which methods of estimating a capital investment project ignore time value of money?
i) Net present value and accounting rate of return.
ii) Accounting rate of return and internal rate of return.
iii) Net present value and payback period.
iv) Payback period and accounting rate of return.
v) Internal rate of return and payback period.
2. Activities which involve production or purchase of merchandise and sale of goods and services to customers, including expenditures related to administering business, are categorised as:
i) Indirect activities.
ii) Investing activities.
iii) Financing activities.
iv) Operating activities.
v) Direct activities.
3. Statement of cash flows helps analysts estimate the:
i) All of the above.
ii) Means used to finance investing activities.
iii) Source of cash for plant expansion.
iv) Source of cash for debt repayments.
v) Differences between net income and net operating cash flow.
4. First line item in operating activities section of spreadsheet for a statement of cash flows prepared by using indirect method is:
i) Adjustments to net income.
ii) Cash received from customers.
iii) Increase (decrease) in accounts receivable.
iv) Cash.
v) Net income.