Return on equity measures the yield shareholders earn on the assets invested. 1) False 2) True Which of the following is considered a cash outflow? a decrease in prepaid expenses an increase in long-term debt an increase in accounts payable an increase in inventory Both depreciation and adjustments in non-cash working capital accounts are presented in the statement of cash flows under the section "operating activities". 1) True 2) False What is the profit margin on revenue performance measure related to? operating income gross profit capital assets working capital Which of the following is a measure of liquidity? total assets turnover ratio average collection period return on revenue ratio current ratio A company has the following information. What is the impact on cash as shown in Cash decreased by $40,000. Cash increased by $10,000. Cash increased by $40,000. Cash increased by $46,000