Cashflows TOPICS: 19.Afirm'snetincomereportedonitsincomestatementmustequaltheoperatingcashflowsonthestatementofcash flows. a.True b.False False ANSWER: Easy DIFFICULTY: Accountingprofitandcashflows TOPICS: 20.Astatementreportingtheimpactof afirm'soperating,investing,andfinancingactivitieson cashflowsoveran accountingisthestatementofcashflows. a.True b.False True ANSWER: Easy DIFFICULTY: Statementofcashflows TOPICS: 21.Whena firmconductsa seasonedequityoffering,it increasesanequityaccountwhichisanexampleofa sourceof funds. a.True b.False True ANSWER: Easy DIFFICULTY: Sourcesandusesofcash TOPICS: 22.Whena firmconductsa stockrepurchase,it increasesanequityaccountwhichisanexampleofa sourceoffunds. a.True False ANSWER: Easy DIFFICULTY: Sourcesandusesofcash TOPICS: 23.Aliquidassetisan assetthatcanbe easilyconvertedintocashwithoutasignificantlossof its originalvalue. a.True True ANSWER: Easy DIFFICULTY: Liquidityratios TOPICS: 24.GenzymeCorporationhasseenitsdayssalesoutstanding(DSO)declinefrom38dayslastyearto 22daysthis implyingthatmoreofthefirm'ssuppliersarebeingpaidontime. a.True False ANSWER: Easy DIFFICULTY: Dayssalesoutstanding(DSO) TOPICS:
TOPICS: Cashflows 19.Afirm'snetincomereportedonitsincomestatementmustequaltheoperatingcashflowsonthestatementofcash flows. a.True b.False ANSWER: False DIFFICULTY: Easy TOPICS: Accountingprofitandcashflows 20.Astatementreportingtheimpactof afirm'soperating,investing,andfinancingactivitieson cashflowsoveran accountingisthestatementofcashflows. a.True b.False ANSWER: True DIFFICULTY: Easy TOPICS: Statementofcashflows 21.Whena firmconductsa seasonedequityoffering,it increasesanequityaccountwhichisanexampleofa sourceof funds. a.True b.False ANSWER: True DIFFICULTY: Easy TOPICS: Sourcesandusesofcash 22.Whena firmconductsa stockrepurchase,it increasesanequityaccountwhichisanexampleofa sourceoffunds. a.True ANSWER: False DIFFICULTY: Easy TOPICS: Sourcesandusesofcash 23.Aliquidassetisan assetthatcanbe easilyconvertedintocashwithoutasignificantlossof its originalvalue. a.True ANSWER: True DIFFICULTY: Easy TOPICS: Liquidityratios 24.GenzymeCorporationhasseenitsdayssalesoutstanding(DSO)declinefrom38dayslastyearto 22daysthis implyingthatmoreofthefirm'ssuppliersarebeingpaidontime. a.True ANSWER: False DIFFICULTY: Easy TOPICS: Dayssalesoutstanding(DSO)
Test-Bank-CFIN-4-4th-Edition-Besley.docx