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Question 1
Which of the following items is NOT included in current assets?
Answer
Accounts receivable.
Inventory.
Bonds.
Cash.
Short-term, highly liquid, marketable securities.
2 points
Question 2
Which of the following factors could explain why Dellva Energy had a negative net cash flow last year, even though the cash on its balance sheet increased?
Answer
The company sold a new issue of bonds.
The company made a large investment in new plant and equipment.
The company paid a large dividend.
The company had high amortization expenses.
The company repurchased 20% of its common stock.
2 points
Question 3
Aubey Aircraft recently announced that its net income increased sharply from the previous year, yet its net cash flow from operations declined. Which o
