FINC 312
Which of the following are period costs?
General expenses, selling costs, administrative expenses
Liquitidy refers to the ease of changing
assets to cash
The use of financial leverage can
increase the chance of financial distress and business failure, increase the potential reward for investors, greatly magnify both gains and losses.
Long-term liabilities represent obligations of the firm lastings over
1 year
Operating cash flow includes capital spending and working capital requirements.
False
Net income refers to income earned
after interest and taxes
The statement of cash flow explains changes in
cash and equivalents
The cash flow identity reflects the fact that
cash flow from the firm's assets equals the total of cash flow to creditors and cash flow to stockholders, a firm generates cash through its various activities, cash is either used to produce the product or service, pay creditors or pay out to the owners of the firm.
The price at which willing buyers and sellers would trade is called _____ value
market
The accounting equation shows that stockholders' equity equal assets _____ liabilities
minus
Assets can be described as items that:
a firm owns, provide market value to the firm, generate revenue
Which of the following are classified as liabilities on a firm's balance sheet?
Notes payable, accounts payable.