A firm’s cash flows can be divided into
cash flow from: (1) operating activities (2) investment activities, and (3)
financing activities. The operation activity cash flows are cash flows--inflows
and outflows--directly related to origination and sale of the financial firm’s
assets and to operating costs such as general market activities, security
trading activities, interest received and foreclosed collateral. Investment
activity cash flows are cash flows and financial investments. Clearly, purchase
transactions would result in cash outflows whereas sales transaction would
generate cash inflows. The financing activity cash flows result from debt and
equity financing transactions. Borrowing and repaying either short - term
debt or long - term debt would result in a corresponding cash inflow or outflow.
Similarly, the sale of common or preferred stock would A. net profit after taxes B. retained earning s of a given period C. the firm’s cash position of given period D. financial position of the firm [填空题]
Wanted: ACCOUNTANT [单项选择]A firm pays accrued wages with cash. Assuming a current ratio and a quid (acid test) ratio that are both greater than 1.0, what will be the impact on the current ratio, the quick ratio and net income Current ratio Quick ratio Net income()①A. Decrease Decrease Decrease ②B. Decrease Increase Increase ③C. Increase Increase Stay the same
A. ① B. ② C. ③ [单项选择]Under the cash basis of accounting, a firm recognizes revenues from selling goods and providing Services in the period when it receives cash from customers. It reports (19) in the period when it makes cash expenditures for merchandise, salaries, insurance, taxes, and (20) items. To illustrate the measurement of performance under the cash basis of accounting, consider the following example.
Donald and Joanne Allens open a hardware store on January 1, Year 1. The firm receives $20,000 (21) cash from the Aliens and borrows $12,000 from a local bank. It must repay the loan on June 30, Year 1, with interest charged (22) the rate of 12 percent per year. The firm rents a store building on January 1, and pays 2 months’ rent of $4,000 (23) . On January 1, it also pays the premium of $ 2,400 for property and liability insurance coverage for the year (24) December 31, Year 1. During January it acquires merchandise costing $40,000, (25) it purch A. treat as B. pay for C. pay back D. treat 我来回答: 提交
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