Reference no: EM132678836

Problem 1: Which of the following situations would most likely be observed on the statement of cash flow for a start-up company?

Select one:

a. Operating Cash Flow : positive

Investing Cash Flow: positive

Financing Cash Flow: positive

b. Operating Cash Flow: negative

Investing Cash Flow:negative

Financing Cash Flow:negative

c. Operating Cash Flow: positive

Investing Cash Flow:positive

Financing Cash Flow: NEGATIVE

d .Operating Cash Flow: negative

Investing Cash Flow: positive

Financing Cash Flow: positive

e. Operating Cash Flow: negative

Investing Cash Flow: negative

Financing Cash Flow: positive

Problem 2: The activities on the statement of cash flows relate to the Balance Sheet Equation as follows:

Select one:

a. Investing activities less financing activities equals assets

b. Financing activities reflect the mix of liabilities and shareholders's equity

c. Investing activities reflect which assets the company invests in

d. B and C

e. A, B and C

Problem 3: Which section of the statement of cash flows best predicts the company's ability to generate future cash flows?

Select one:

a. Operating activities

b. Investing activities

c. Financing activities

d. Change in cash balance

Problem 4: A common definition of Free Cash Flow is equal to:

Select one:

a.Cash Flow from Operations less Dividends

b.Cash Flow from Operations less Debt Payments

c.Cash Flow from Operations less Capital Expenditures

d. Cash Flow from Operations less Capital Expenditures less Debt Payments