Torval, Inc. retires debt securities by issuing equity securities. This is considered a:
A. Cash flow from investing.
B. Cash flow from financing.
C. Noncash transaction.
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A vertical common-size income statement expresses each category of the income statement as a percentage of:
A. assets.
B. Gross profit.
C. revenue.
Sale of land would be classified as:
A. Operating cash flow.
B. Investing cash flow.
C. Financing cash flow.
Which of the following would most likely result in higher gross profit margin, assuming no fixed costs?
A 10% increase in the number of units sold.
B. A 5% decrease in production cost per unit.
C. A 7% decrease in administrative expenses.
Under IFRS, interest expense would be classified as:
A. Either operating cash flow or financing cash flow.
B. Operating cash flow only.
C. Financing cash flow only.