Reference no: EM132965373
Problem 1: The cash flow statement reveals:
Select one:
a. Loan sources only
b. Uses of funds only
c. Sources and uses of cash
d. Sources of funds only
Problem 2: Which of the following is the amount of cash remaining after a company has covered its operating activities and capital expenditures (i.e. investing in long-term assets)?
Select one:
a. Restricted cash flow
b. Free cash flow
c. All of the available options
d. None of the available options
Problem 3: Which of the following are included in the financing section of the cash flow statement?
i - New bank loan
ii - Payment of dividends
iii - Profit for the year
iv - Sale of shares
Select one:
a. i, ii and iv only
b. i and iii only
c. all of i, ii, iii and iv
d. ii and iii only
Problem 4: Which scenario would be considered the most favorable by shareholders of a company?
Select one:
a. Every scenario is equally favorable.
b. The company has negative free cash flow.
c. The company has zero free cash flow.
d. The company has positive free cash flow.