Dashboard / My courses / Quản lý dòng tiền*(124)_CLC_03 / Chapter 2: Receipts and disbursements management
/ Mid-term test 1
Started on Thursday, 26 September 2024, 10:00 AM
State Finished
Completed on Thursday, 26 September 2024, 11:05 AM
Time taken 1 hour 5 mins
Grade 96.00 out of 100.00
Question 1
Correct
Mark 4.00 out of 4.00
During the year, Al's Tools decreased its accounts receivable by $160, increased its inventory by $115, and decreased its accounts
payable by $70. How did these three accounts affect the sources of uses of cash by the firm?
A. Net source of cash of $120
B.
Net use of cash of $25
C.
Net source of cash of $205
D. Net source of cash of $45
E. Net use of cash of $115
Your answer is correct.
The correct answer is:
Net use of cash of $25
Question 2
Correct
Mark 4.00 out of 4.00
Cash flow from assets is also known as the firm's:
A. Capital structure
B. Equity structure
C. Hidden cash flow
D. Historical cash flow
E. Free cash flow
Your answer is correct.
The correct answer is:
Free cash flow
Question 3
Correct
Mark 4.00 out of 4.00
Carlisle Carpets has cost of goods sold of $92,511, interest expense of $4,608, dividends paid of $3,200, depreciation of $14,568, an
increase in retained earnings of $11,920, and a tax rate of 21 percent. What is the operating cash flow?
A. $36,462.58
B. $34,296.00
C.
$42,122.42
D.
$31,543.10
E. $36,741.42
Your answer is correct.
The correct answer is:
$34,296.00
Question 4
Correct
Mark 4.00 out of 4.00
Which one of the following is a use of cash?
A. Increase in long-term debt
B. Decrease in fixed assets
C. Decrease in inventory
D.
Decrease in accounts receivables
E.
Decrease in accounts payable
Your answer is correct.
The correct answer is:
Decrease in accounts payable
Question 5
Correct
Mark 4.00 out of 4.00
Which one of the following statements related to the cash flow to creditors must be correct?
A. If the cash flow to creditors is positive, then the firm must have borrowed more money than it repaid.
B. If the cash flow to creditors is negative, then the firm must have a negative cash flow from assets.
C. A positive cash flow to creditors means that a firm has increased its long-term debt.
D.
A positive cash flow to creditors represents a net cash outflow from the firm.
E.
If the cash flow to creditors is zero, then a firm has no long-term debt.
Your answer is correct.
The correct answer is:
A positive cash flow to creditors represents a net cash outflow from the firm.
Question 6
Correct
Mark 4.00 out of 4.00
Which term relates to the cash flow that results from a company's ongoing, normal business activities?
A. Net working capital
B. Operating cash flow
C. Capital spending
D. Cash flow from assets
E. Cash flow to creditors
Your answer is correct.
The correct answer is:
Operating cash flow
Question 7
Correct
Mark 4.00 out of 4.00
Ernie's Home Repair had beginning long-term debt of $51,207 and ending long-term debt of $36,714. The beginning and ending
total debt balances were $59,513 and $42,612, respectively. The interest paid was $2,808. What is the amount of the cash flow to
creditors?
A. $11,174
B. $17,418
C. −$11,685
D. −$11,272
E.
$17,301
Your answer is correct.
The correct answer is:
$17,301
Question 8
Correct
Mark 4.00 out of 4.00
An increase in the interest expense for a firm with a taxable income of $123,000 will:
A. decrease the operating cash flow.
B. decrease the cash flow from equity.
C. increase the cash flow from assets.
D.
increase gross income.
E.
increase net income.
Your answer is correct.
The correct answer is:
increase the cash flow from assets.
Question 9
Correct
Mark 4.00 out of 4.00
Which two of the following require liquidity but do not necessarily require cash reserves?
A. Compensating balance requirement and transaction motive
B. Precautionary and speculative motives
C. Speculative and transaction motives
D.
Transaction and precautionary motives
E.
Compensating balance requirement and precautionary motive
Your answer is correct.
The correct answer is:
Precautionary and speculative motives
Question 10
Correct
Mark 4.00 out of 4.00
For the past year, Galaxy Interiors had depreciation of $2,419, beginning total assets of $23,616, and ending total assets of $21,878.
Current assets decreased by $1,356. What was the amount of net capital spending for the year?
A.
$1,172
B.
$1,993
C.
−$382
D.
$2,037
E.
$2,801
Your answer is correct.
The correct answer is:
$2,037
Question 11
Incorrect
Mark 0.00 out of 4.00
At the beginning of the year, Trees Galore had current liabilities of $15,932 and total debt of $68,847. By year end, current liabilities
were $13,870 and total debt was $72,415. What is the amount of net new borrowing for the year?
A.
−$2,480
B. $5,630
C.
$4,677
D.
−$2,062
E.
$3,568
Your answer is incorrect.
The correct answer is:
$5,630
Question 12
Correct
Mark 4.00 out of 4.00
Net capital spending:
A. reflects the net changes in total assets over a stated period of time.
B. is equal to ending net fixed assets minus beginning net fixed assets
C.
is equal to the net change in the current accounts.
D.
is equivalent to the cash flow from assets minus the operating cash flow minus the change in net working capital.
E.
is equal to zero if the decrease in the net fixed assets is equal to the depreciation expense.
Your answer is correct.
The correct answer is:
is equal to zero if the decrease in the net fixed assets is equal to the depreciation expense.
Question 13
Correct
Mark 4.00 out of 4.00
Cash flow to stockholders is defined as:
A. the change in total equity over the past year.
B. operating cash flow minus the cash flow to creditors.
C. the total amount of interest and dividends paid during the past year.
D. cash flow from assets plus the cash flow to creditors.
E.
dividend payments less net new equity raised.
Your answer is correct.
The correct answer is:
dividend payments less net new equity raised.
Question 14
Correct
Mark 4.00 out of 4.00
The Lakeside Inn had operating cash flow of $48,450. Depreciation was $6,700 and interest paid was $2,480. A net total of $2,620 was
paid on long-term debt. The firm spent $24,000 on fixed assets and decreased net working capital by $1,330. What was the amount of
the cash flow to stockholders?
A. $19,998
B. $5,100
C. $20,680
D. $18,020
E. $7,830
Your answer is correct.
The correct answer is:
$20,680
Question 15
Correct
Mark 4.00 out of 4.00
At the beginning of the year, the long-term debt of a firm was $72,918 and total debt was $138,407. At the end of the year, long-term
debt was $68,219 and total debt was $145,838. The interest paid was $6,430. What is the amount of the cash flow to creditors?
A.
$1,731
B.
$19,172
C.
$11,129
D.
−$1,001
E.
$13,861
Your answer is correct.
The correct answer is:
$11,129
Question 16
Correct
Mark 4.00 out of 4.00
For the year, B&K United increased current liabilities by $1,400, decreased cash by $1,200, increased net fixed assets by $340,
increased accounts receivable by $200, and decreased inventory by $150. What is the annual change in net working capital?
A. −$70
B. −$2,550
C. −$2,210
D. $550
E. $590
Your answer is correct.
The correct answer is:
−$2,550
Question 17
Correct
Mark 4.00 out of 4.00
A positive cash flow to stockholders indicates which one of the following with certainty?
A. Both the cash flow to assets and the cash flow to creditors must be positive.
B. The amount of the sale of common stock exceeded the amount of dividends paid.
C. No dividends were distributed, but new shares of stock were sold.
D.
Both the cash flow to assets and the cash flow to creditors must be negative.
E.
The dividends paid exceeded the net new equity raised.
Your answer is correct.
The correct answer is:
The dividends paid exceeded the net new equity raised.
Question 18
Correct
Mark 4.00 out of 4.00
Carlisle Express paid $1,282 in interest and $975 in dividends last year. Current assets increased by $2,700, current liabilities decreased
by $420, and long-term debt increased by $2,200. What was the cash flow to creditors?
A.
−$530
B.
$3,094
C.
−$918
D. $1,839
E.
2,132
Your answer is correct.
The correct answer is:
−$918
Question 19
Correct
Mark 4.00 out of 4.00
Which one of the following is a source of cash?
A. Granting credit to a customer
B. Purchase of inventory
C. Repurchase of common stock
D. Payment to a supplier
E.
Acquisition of debt
Your answer is correct.
The correct answer is:
Acquisition of debt
Question 20
Correct
Mark 4.00 out of 4.00
Which one of the following must be true if a firm had a negative cash flow from assets?
A. Newly issued shares of stock were sold.
B. The firm acquired new fixed assets.
C. The firm utilized outside funding.
D. The firm had a net loss for the period.
E. The firm borrowed money.
Your answer is correct.
The correct answer is:
The firm utilized outside funding.
Question 21
Correct
Mark 4.00 out of 4.00
The sources and uses of cash over a stated period of time are reflected on the:
A. statement of cash flows.
B. balance sheet.
C. tax reconciliation statement.
D. income statement.
E. statement of operating position
Your answer is correct.
The correct answer is:
statement of cash flows.
Question 22
Correct
Mark 4.00 out of 4.00
Which one of the following is a source of cash?
A. Decrease in accounts payable
B. Decrease in inventory
C. Decrease in common stock
D.
Increase in accounts receivable
E.
Increase in fixed assets
Your answer is correct.
The correct answer is:
Decrease in inventory
Question 23
Correct
Mark 4.00 out of 4.00
Which one of the following is an expense for accounting purposes but is not an operating cash flow for financial purposes?
A. Cost of goods sold
B. Administrative expenses
C. Taxes
D. Interest expense
E. Labor costs
Your answer is correct.
The correct answer is:
Interest expense
Question 24
Correct
Mark 4.00 out of 4.00
Cash management primarily involves:
A. maximizing the income earned on cash reserves.
B. optimizing the collections and disbursements of cash.
C. reconciling a company's book balance with its bank balance.
D. determining the best method of raising capital.
E. determining the optimal level of liquidity that should be maintained.
Your answer is correct.
The correct answer is:
optimizing the collections and disbursements of cash.
Question 25
Correct
Mark 4.00 out of 4.00
Webster's has beginning net fixed assets of $684,218, ending net fixed assets of $679,426, and depreciation expense of $48,859. What
is the net capital spending for the year if the tax rate is 25 percent?
A.
$53,651
B.
$44,067
C. $35,255
D. $42,920
E. $48,600
Your answer is correct.
The correct answer is:
$44,067
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