Question 1

An income statement can be described as a "snap shot" while the balance sheet can be considered a "flow statement". Group of answer choices True False Question 2 The left side of a balance sheet lists a company's assets, while the right side holds the claims of debt and equity holders against those assets. Group of answer choices True False Question 3 Current assets are those that can be turned into cash within one quarter of a company's operations. Their common categories include: cash, cash equivalents, receivables, and inventory. Current assets are listed in descending order as they are paid. Group of answer choices True False Question 4 Current liabilities are listed in priority order. Those easiest to turn into cash are listed first. Those hardest to convert into cash are listed last. Group of answer choices True False Question 5 The difference between current assets and current liabilities is called net working capital. Group of answer choices True False

Question 6 An income statement is also called a profit and loss statement. Group of answer choices True False

Question 7 Operating income is often called EBITDA. Group of answer choices True False Question 8 The difference between operating income and operating cash flow is depreciation and amortization. Group of answer choices True False Question 9 Which of the following is not a category within a typical cash flow statement? Group of answer choices Process Activities Investing Activities Operating Activities Financing Activities Question 10 There are only two things that can be done with a company's net income. Which of the following is not one of them? Group of answer choices dividends None of the above payout to debt holders retained earnings