Chapter 15

Which is not measured in a statement of cash flows?

a. Cash Flow from Sales

Gormley Paper Products, Inc, is a privately held company with no intentions of going public or being managed by an outside group. It is looking to build a new manufacturing facility in another state. It is considering all of its financing options. Which would be a viable possibility for raising the necessary funds for the long-range project?

a. Issuing bonds

Maureen found an old barn that would be a perfect location for her restaurant and catering business. She opened a Kickstarter account to begin to raise funds for the business. Maureen is taking advantage of

a. crowdfunding

Which formula is the fundamental accounting equation?

b. Assets = liabilities + owners' equity

Hunter Wentworth is reviewing last quarter's financial statements and realizes that there has been an increase in working capital. The most likely cause for an increase in working capital is a(n)

b. increase in current assets and a decrease in current liabilities.

Financial accounting is the process of

b. producing financial documents for outside investors.

Ted White owns Soup & Salad Café. The terms of his last order for produce were 3/15 net 60. The total amount of the order is $1,500. How much will Ted pay if he pays within two weeks?

c. $1,455

Which of the following reflects a company's financial leverage?

c. Debt-to-equity ratic

Cash flow management is important for which business?

d. All of the above

The role of a financial manager can best be described as

d. All of the above.