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Chapters 1-4 The Accounting Cycle
Chapters 5-8 Current Assets
Chapters 9-11 Long-Term Assets
Chapters 12-14 Liabilities/Equities
Chapters 15-16 Using Information
- Chapter 15: Financial Reporting and Concepts
- Chapter 16: Financial Analysis and the Statement of Cash Flows
Chapters 17-20 Managerial/Cost
Chapters 21-24 Budgeting/Decisions

Chapter 16 - Goals Achievement

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Chapter 16 – Goals Achievement

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Question 1 of 15

1. Question
Which of the following is excluded in calculating the quick ratio?
- short-term investments
- merchandise inventory
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Question 2 of 15

2. Question
Which type of ratio is useful for measuring the ability of a business to meet current debts as they come due?
- liquidity ratio
- profitability ratio
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Question 3 of 15

3. Question
What is included in the numerator of the inventory turnover ratio?
- average inventory
- cost of goods sold
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Question 4 of 15

4. Question
The times interest earned ratio consists of income before income taxes and interest divided by:
- debt
- interest charges
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Question 5 of 15

5. Question
The statement of cash flows reveals the cash generated or consumed by a firm’s operating, investing, and financing activities.
- true
- false
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Question 6 of 15

6. Question
Cash flow information provides signals about the maturity of a business, as well as information about looming financial problems.
- true
- false
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Question 7 of 15

7. Question
Which activities relate primarily to the production and sale of goods and services and enter into the determination of income?
- operating activities
- financing activities
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Question 8 of 15

8. Question
Which of the following would constitute a typical cash inflow from an investing activity?
- sale of stocks of other firms
- issuance of stock
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Question 9 of 15

9. Question
Which of the following would constitute a noncash investing/financing transaction?
- exchanging land for stock
- issuing a cash dividend
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Question 10 of 15

10. Question
Significant noncash investing/financing transactions are reported on a statement of cash flows prepared using either the direct method or:
- the indirect method
- investing method
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Question 11 of 15

11. Question
Which of the following approaches to preparing the statement of cash flows translates income from the accrual basis to the cash basis?
- direct method
- indirect method
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Question 12 of 15

12. Question
Cash received from customers can be calculated by starting with accrual basis sales and adding:
- decreases in accounts receivable
- increases in accounts receivable
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Question 13 of 15

13. Question
With the indirect approach to calculating cash flow from operating activities, increases in current assets related to operations should be subtracted from the accrual basis income figure.
- true
- false
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Question 14 of 15

14. Question
In preparing a statement of cash flows, the proceeds from a disposal of equipment should be reported as a cash inflow from investing activities.
- true
- false
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Question 15 of 15

15. Question
Cash dividends paid are reported as a financing cash:
- inflow
- outflow
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Chapters 1-4
Chapters 5-8
Chapters 9-11
Chapters 12-14
Chapters 15-16
- Chapter 15: Financial Reporting and Concepts
- Chapter 16: Financial Analysis and the Statement of Cash Flows
Chapters 17-20
Chapters 21-24
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