1. Dividends:

Select one: a. do not enter the cash flows statement b. are paid out of post-tax profits c. are an expense for the income statement d. are paid out of pre-tax profits

2.

Suppose that the business grants a discount of 1000 to a credit customer. The account that needs to be credited is:

Select one:

a. discounts granted

b. payables

c. receivables

d. cash

3.

A leverage ratio above 2 indicates that:

Select one:

a. Not enough information to answer

b. The company is healthy and there are no solvency concerns

c. The company is near financial distress

d. The company is in a normal situation