Reference no: EM132717834

Problem 1: Which of the following statements is true?

Select one:

a For an entity to survive, the net cash flow from financing activities should be positive.

b For an entity to survive, the net cash flow from operating activities should be positive.

c For an entity to survive, the net cash flow from operating activities should be negative.

d For an entity to survive, the net cash flow from investing activities should be positive.

Problem 2: Accepting a special order will require consideration of such factors as:

Select one:

a All of the options should be considered.

b Reactions of existing customers who are paying a higher price for the product.

c Whether there is available capacity.

d If there a possibility of developing a long term relationship with the customer.

Problem 3: The days debtors ratio indicates:

Select one:

a an entity's efficiency in paying back its borrowings.

b the average length of time it takes an entity to pay its account payable.

c an entity's efficiency in raising capital.

d the average length of time it takes an entity to collect its accounts receivable.