1. The cash flow on total assets ratio is defined as cash flows from operations divided by average total assets.
Select one:
True or False
2.Investing activities include the:
Select one:
a. Purchase of plant assets.
b. Lending and collecting on notes receivable.
c. Sale of short-term investments other than cash equivalents.
d. Sale of plant assets.
e. All of these.
3.Profit margin is sales divided by net income.
Select one:
True
False
4.Accounting standards:
Select one:
a. Allow companies to omit the statement of cash flows from a complete set of financial statements if cash is an insignificant asset.
b. Require that companies omit the statement of cash flows from a complete set of financial statements if the company has no investing activities.
c. Require that companies include a statement of cash flows in a complete set of financial statements.
d. Allow companies to include the statement of cash flows in a complete set of financial statements if the cash balance makes up more than 50% of the current assets.
Allow companies to omit the statement of cash flows from a complete set of financial statements if the company has no financing activities.
5.Allow companies to omit the statement of cash flows from a complete set of financial statements if the company has no financing activities.
True of False
6.The Institute of Management Accountants Statement of Ethical Professional Practice requires that management accountants be competent and act with integrity.
Select one:
True
False
7.Industry standards for financial statement analysis:
Select one:
a. Are based on a company's prior performance.
b. Are set by the government.
c. Are set by the financial performance and condition of the company's industry.
d. Are based on rules of thumb.
e. Compare a company's income with the prior year's income.
8.A corporation's minimum legal capital is often defined to be the total par value of the shares:
Select one:
a. Issued.
b. Authorized.
c. Subscribed.
d. Outstanding.
e. In treasury.