Devry FIN 382 Week 6 Quiz
Question 1.(TCO 4) In a Statement of Cash Flows (indirect method), depreciation expense should be presented as
a cash flow from financing activities.
an addition to net income.
a cash flow from investing activities.
a financial activity.
a deduction from net income.
Question 2.(TCO 4) Cash outflows are indicated by the following account balance change
increase in assets.
decrease in liabilities.
decrease in stockholder’s equity.
All of the above
Question 3. (TCO 4) An analyst should treat preferred stock on a firm’s balance sheet as debt when calculating leverage ratios if the preferred stock is
convertible into common stock.
callable by the issuer.
redeemable by shareholders.
issued at a variable dividend rate.
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Question 4. (TCO 4) Which of the following does not represent future expected cash inflows?
Question 5. (TCO 4) Decreases in assets on the Statement of Cash Flows indicate
non cash inflows.
non cash outflows.