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Capital Investment Decisions Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Which of the following is true about pro-forma financial statements?

Question 2 2. What is the formula for net working capital?

Question 3 3. What effect does depreciation have on business finances?

Question 4 4. Where can authoritative rules for MACRS be found?

Question 5 5. Which one of the following is NOT factored into the top-down method of operating cash flow when calculating EBIT?

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Question 6 6. Which of the following is true of depreciation using MACRS?

Question 7 7. The Acme Shoe Company has always manufactured their own shoelaces for the shoes they produce and sell. They are preparing pro forma financial statements to consider the effects of purchasing shoelaces from a third-party supplier in order to reduce their expenses. What type of expense would this purchase be considered?

Question 8 8. Which of these approaches to calculating the operating cash flow starts with net income?

Question 9 9. Which is true about the balance sheet?

Question 10 10. Which of the following is considered an operating activity from the statement of cash flow?

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Question 11 11. Which statement is true about the income statement?

Question 12 12. Why would a company want to have a high cash flow?

Question 13 13. Using the bottom-up approach, calculate the operating cash flow if net income is $7,000, expenses are $2,000, interest is $600, and depreciation is $4,000.

Question 14 14. Operating cash flow is least useful for which of the following?

Question 15 15. What financial statement is used to calculate operating cash flow?

Capital Investment Decisions Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Finance 101: Principles of Finance  /  Business Courses
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