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 .