ACC 556 ASSIST Education Terms/acc556assist.com ACC 556 ASSIST Education Terms/acc556assist.com | Page 25

ACC 556 Chapter 9 Quiz (100% Score) FOR MORE CLASSES VISIT www.acc556assist.com Chapter 9 Quiz Question 1 The statement of cash flows is a required statement that must be prepared along with an income statement, balance sheet, and retained earnings statement. Question 2 The activity from the balance sheet to be presented in the financing activities section of the statement of cash flows is based on an analysis of stockholders‘ equity only. Question 3 The acquisition of a building by issuing bonds would be considered an investing and financing activity that did not affect cash. 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