1. The cash flow to creditors includes the cash:
A. received by the firm when payments are paid to suppliers.
B. outflow of the firm when new debt is acquired.
C. outflow when interest is paid on outstanding debt.
D. inflow when accounts payable decreases.
E. received when long-term debt is paid off.
2. The carrying value or book value of assets:
A. is determined under GAAP and is based on the cost of the asset.
B. represents the true market value according to GAAP.
C. is always the best measure of the company's value to an investor.
D. is always higher than the replacement cost of the assets.
E. None of these.