题目内容

Which of the following items is least likely considered a cash flow from financing activity under U.S. GAAP?

A. Receipt of cash from the sale of bonds.
B. Payment of cash for dividends.
C. Payment of interest on debt.

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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.

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.

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