Question 1. How is the ratio of liabilities to stockholder's equity related to solvency?
Question 2. What is the purpose of depreciation and why are there so many methods?
Question 3. What is the principle defining whether you capitalize or expense an acquisition?
Question 4. Given this distinction, how do capitalized items become appropriately expensed?
Question 5. Why does a current, more than adequate cash flow assure that you are not insolvent?
Question 6. How would the growth in the dollar value of accounts receivable impact the cash flow for any given level of income?
Question 7. How does a firm's equity investment in other firms impact the cash flow of the firm?
Question 8. Why is it critical to separate operating and non-operating income?
Question 9. How would the relationship of revenues and accounts receivables and cash flow differ as a result of credit and collections policy?