Source of cash

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1. Which one of the following is a source of cash?

decrease in notes payable

decrease in accounts receivable

decrease in common stock

increase in inventory

decrease in accounts payable

2. Which of the following statement is false?

A balance sheet is the financial statement that shows a financial snapshot, taken at a point in time, of all the assets the company owns and all the claims against those assets.

All else equal, a cecrease in a company's financial leverage will increase its ROE.

A common-size balance sheet presents each item as a percentage of total assets.

A cash flow statement is the financial statement that summarizes changes in the company's cash balance over a period of time.

Reference no: EM131975046

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