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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
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.