Quiz Ch 11 – Types of Activities Reported on the Statement of Cash Flows
Financial Accounting
Thomas, Tietz, and Harrison
12th Edition
What are the three types of activities that are reported on the statement of cash flows?
What are the three types of activities that are reported on the statement of cash flows?
Which of the following is NOT reported on the statement of cash flows?
What is the typical base item used when conducting a vertical analysis of a balance sheet?
What is the ratio that measures the coverage of interest expense by operating income?
The debt ratio of a company is calculated as the difference between total assets and total liabilities divided by total assets.
In a vertical analysis of the income statement, line items are expressed as a percentage of net income.
Net earnings, particularly earnings per share, receive the most focus among all items in a financial statement for corporations.
To conduct a comprehensive analysis of a company, it is essential to first comprehend its industry and operations.
When a company’s operating earnings show a consistent increase in proportion to its net sales, it indicates a rising level of earnings quality.
It is not advisable to isolate or exclude items such as discontinued operations, which represent one-time or non-recurring events, from operating earnings.