Quiz Ch 03 – T/F Dividends in Cash Flow Statements
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
True or false: On the statement of cash flows, dividends paid are categorized as a financing activity.
True or false: On the statement of cash flows, dividends paid are categorized as a financing activity.
True or false: Every country uses a standard accounting practice.
True or false: Lowering accounts receivable results in a cash expenditure which reduces the firm’s net cash balance.
True or false: The company’s net cash balance when acquiring new equipment consumes cash.
True or false: The income statement represents a firm at a certain time.
True or false: In the statement of cash flows, interest expense payments are classified as financing activities.
True or false: A high market value of assets implies a high market value of liabilities.
True or false: The market value of shareholders’ equity claim equals the difference between the market values of assets and liabilities.
True or false: A positive net income gives a positive cash flow from operations in that period.
True or false: The allocation of capital equipment costs over their estimated lifespan is a contributing factor to the difference between profits and cash.