An analysis of noncash accounts disclosed the following:
a. Machinery was purchased for $4,500 cash.
b. $10,000 was borrowed on a long-term note.
c. 1,000 shares of common stock were issued at $5 each.
d. Cash dividends of $2,000 were declared and paid.
e. An investment was sold for $23,000.
f. $50,000 of bonds was retired at maturity.
The net cash provided by (or used in) financing activities was which of the following?

• A.A $14,000 increase
• B.A $37,000 decrease
• C.A $23,000 increase

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Which section of the statement of cash flows represents cash generated internally?

• A.operating activities
• B.investing activities
• C.financing activities

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The price/earnings ratio valuation method values a company:

• A.on an absolute basis
• B.relative to other comparable companies based on the ratio of value to earnings
• C.based on historical earnings

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If both the demand and the supply are perfectly inelastic, a tax results in

• A.a smaller quantity traded and a larger deadweight loss.
• B.no change in quantity and no deadweight loss.
• C.a smaller quantity traded and a smaller deadweight loss.

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A company that employs a low-cost leadership strategy is associated with:

• A.High operating profit margin and high asset turnover
• B.High operating profit margin and low asset turnover
• C.Low operating profit margin and high asset turnover

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