1. The farther a cash flow is in the future, the less its present value today.

Group of answer choices

True

False

2.

An increase in accounts payable is classified as a use of cash on the cash flow statement.

Group of answer choices

True

False

3. Which of the following is classified as a source of cash on the cash flow statement

Group of answer choices

increase in long-term debt

decrease in accounts receivable

decrease in accounts payable

decrease in PP&E (Fixed Assets)

4. Which of the following is classified as a use of cash on the cash flow statement?

Group of answer choices

depreciation expense

increase in accounts payable

decrease in inventory

decrease in common stock

increase in long-term debt

5. Which ratio measures most directly the ability to turn total balance sheet Assets into Sales?

Group of answer choices

Total Asset turnover

ROE

Investment turnover

NOWC turnover

PP&E turnover

6.

In the traditional DuPont model, which measure intersects both the income statement and balance sheet to measure the profitability percentage generated directly to the Total Asset investment:

Group of answer choices

ROA

ROE

Net profit margin

Total asset turnover

Net income

7. Return on Equity is the most direct measure of percentage rate of return to the stockholder capital investment.

Group of answer choices

True

False

8. If a company has a lower (and positive) ROA than its competitors, but a higher ROE, it must be financing more of its assets with debt.

Group of answer choices

True

False

9. Comparing two otherwise identical companies, the one with more debt and less equity will experience greater variability in its Return on Equity, all else equal.

Group of answer choices

True

False

10. Comparing two otherwise identical companies, the one with more debt and less equity will have a higher Return on Assets, all else equal.

Group of answer choices

True

False