Which one of the following statements concerning net working capital is correct?
  • Net working capital increases when inventory is sold for cash at a profit.
Which one of the following statements concerning net working capital is correct?
  • A decrease in the cash balance also decreases net working capital.

Which one of the following is included in a firm’s market value but yet is excluded from the firm’s accounting value?

  • good reputation of the company
Which term relates to the cash flow which results from a firm’s ongoing, normal business activities?
  • operating cash flow
The cash flow of a firm which is available for distribution to the firm’s creditors and stockholders is called the:
  • cash flow from assets.
The percentage of the next dollar you earn that must be paid in taxes is referred to as the _____ tax rate.
  • marginal
Which one of the following is the financial statement that summarizes a firm’s revenue and expenses over a period of time?
  • income statement

The common set of standards and procedures by which audited financial statements are prepared is known as the:

  • Generally Accepted Accounting Principles.