Question 4
The cash debt coverage ratio indicates a company‘s ability to repay its
liabilities from cash generated from operations.
Question 5
The current cash debt coverage ratio is considered a better
representative of liquidity than the current ratio because it involves the
entire year rather than a balance at one point in time.
Question 6
The statement of cash flows
Question 7
Generally, the most important category on the statement of cash flows
is cash flows from
Question 8
Assume that the Quinn Corporation uses the indirect method to depict
cash flows. Indicate where, if at all, interest paid on note would be
classified on the statement of cash flows.
Question 9
Which of the following transactions does not affect cash during a
period?
Question 10
Zoum Corporation had the following transactions during 2014:
1 - Issued $125,000 of par value common stock for cash.
2 - Recorded and paid wages expense of $60,000.
3 - Acquired land by issuing common stock of par value $50,000.
4 - Declared and paid a cash dividend of $10,000.
5 - Sold a long-term investment (cost $3,000) for cash of $3,000.
6 - Recorded cash sales of $400,000.