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Cash flow statements can be prepared using the:

Question $3$ options:

investing or financing method

direct or indirect method

ASPE or IFRS method

column or row method

Question $4(1$ point$)$

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Which scenario would be considered most favorable by shareholders of a company?

Question $4$ options:

Every scenario is equally favorable.

The company has zero free cash flow.

The company has negative free cash flow.

The company has positive free cash flow

Question $5(1$ point$)$

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When statements are prepared using the accrual basis, a sale on account

Question $5$ options:

does not affect cash

reduces profits

increases cash

decreases cash$$

Question $6(1$ point$)$

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If a bank loan increases from period one to period two, what happened to cash flow?

Question $6$ options:

None of the choices

Cash flow increases$$

Cash flow decreases

Cash flow remains the same

Question $7(1$ point$)$

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A decrease in prepaid expenses from one year to the next

Question $7$ options:

none of the choices

increases cash flow

does not affect cash flow

decreases cash flow

Question $8(1$ point$)$

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The cash flow statement reveals

Question $8$ options:

loan sources only

uses of funds only

sources and uses of cash

sources of funds only

Question $9(1$ point$)$

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Cash flow from financing is supplied by

Question $9$ options:

vendors and government agencies

banks and shareholders

customers and vendors

customers and analysts

Question $10(1$ point$)$

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Keeping inventory levels to a minimum is a good practice to help:

Question $10$ options:

Maintain long$-$term assets

Spend cash

Sales managers$$

Conserve cash

Question $11(1$ point$)$

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The assets included in the quick ratio formula include:

Question $11$ options:

Adding short$-$term investments and accounts receivable to cash

Inventory and accounts receivable$$

inventory, prepaid expenses and total assets

Inventory

Question $12(1$ point$)$

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Which analysis tool expresses individual line items as a percentage of another line item in the same period?

Question $12$ options:

Diagonal analysis

Horizontal analysis

Vertical analysis

Segment analysis

Question $13(1$ point$)$

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One of the differences between common shares and preferred shares is that:

Question $13$ options:

Preferred shares are liabilities, where common shares are considered equity

There are no differences

Preferred shares do not have any voting rights

Common shares cannot receive dividends