A primary objective of the statement of cash flows is to show the income or loss on investing and financing transactions.
Question 16
A master budget is most useful in evaluating a manager ' s performance in controlling costs.
Question 17
The master budget reflects management ' s long-term plans encompassing five years or more.
Question 18
The debt to assets ratio measures the percentage of the total assets provided by creditors
Question 19
A company whose current liabilities exceed its current assets may have a liquidity problem.