Topic

Financial Statements, Taxes, and Cash Flow

Practice related MCQ quizzes and improve step by step.

Quizzes in Financial Statements, Taxes, and Cash Flow

Which one of the following statements concerning net working capital is correct?

Correct answer(s):
    • 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?

Correct answer(s):
    • A decrease in the cash balance also decreases net working capital.

Which one of the following will increase the value of a firm’s net working capital?

Correct answer(s):
    • selling inventory at a profit

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

Correct answer(s):
    • good reputation of the company


Which term relates to the cash flow which results from a firm’s ongoing, normal business activities?

Correct answer(s):
    • operating cash flow

The cash flow of a firm which is available for distribution to the firm’s creditors and stockholders is called the:

Correct answer(s):
    • 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.

Correct answer(s):
    • marginal

Which one of the following is the financial statement that summarizes a firm’s revenue and expenses over a period of time?

Correct answer(s):
    • income statement

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

Correct answer(s):
    • Generally Accepted Accounting Principles.

Which one of the following is the financial statement that shows the accounting value of a firm’s equity as of a particular date?

Correct answer(s):
    • balance sheet