2 The three major categories included on the statement of ca

2) The three major categories included on the statement of cash flows are A) investing, operating, and financing activities B) investing, capital, and financing activities C) investing, operating, and contracting activities D) financial, operating, and internal control activities 3) Planned investments and cash dividends are deducted fromto arrive at A) net cash provided by operating activities B) net cash provided by investing activities C) net cash provided by financing activities D) net income 4) The statement of cash flows helps users A) predict future net income B) evaluate management decisions C) evaluate the company\'s earnings per share D) predict the growth of a company\'s assets . 5) One of the purposes of the statement of cash flows is to A) determine the operating income of a business B) to calculate inventory turnover C) evaluate the level of debt and leverage of a company D) predict the ability of a company to pay debts and dividends 6) Ratio analysis . A) provides a year-to year comparison of a company\'s performar B) is used most effect denote trends within the company C) cannot be used to measure a company against other companies in the same industry because the necessary information is not available ively to measure a company against other companies in the same industry and to D) provides a way to compare different companies 7) Which of the following best describes horizontal analysis? A) comparing financial statement amounts from year to year for the same company B) expressing each financial statement amount as a percentage of a budgeted amount C) comparing a company\'s financial statements with other companies D) calculating key ratios to evaluate performance

Solution

2) A) investing, operating and financing activities.

3) A) net cash provided by operating activities.

4) D) predict the growth of companys assets

5) D) predict the ability of a company to pay debts and dividends

6) B) is used most effectively to measure a company against other companies in the same industry and to denote trends within the company.

7) comparing financial statement amounts from year to year for the same company.