Question :
111. The product life-cycle concept from microeconomics and marketing provides useful : 1245795
111. The product life-cycle concept from microeconomics and marketing provides useful insights into the relations among cash flows from operating, investing, and financing activities. During the _____, weakening profitability—from reduced sales or reduced profit margins on existing sales— signals the beginning of the phase, but ever-declining accounts receivable and inventories can produce positive cash flow from operations. In addition, sales of unneeded property, plant, and equipment can result in positive cash flow from investing activities. Firms can use the excess cash flow to repay remaining debt or diversify into other areas of business.
A. introduction phase
B. growth phase
C. mature phase
D. late maturity phase
E. decline phase
112. The product life-cycle concept from microeconomics and marketing provides useful insights into the relations among cash flows from operating, investing, and financing activities. Biotechnology firms are in their _____ phase, consumer foods companies are in their _____ phase, and U.S. auto manufacturers are in the _____ phase.
A. introduction; late maturity or the decline; growth
B. growth; mature; late maturity or the decline
C. mature; late maturity or the decline; growth
D. late maturity or the decline; growth; introduction
E. introduction; late maturity or the decline; mature
113. The extent to which a firm adjusts net income for changes in noncurrent assets and noncurrent liabilities in deriving cash flow from operations under the indirect method depends on the nature of its operations. Capital-intensive firms will likely show a substantial
A. addback to net income for depreciation expense.
B. subtraction from net income for depreciation expense.
C. addback to net income for capital expenditures.
D. subtraction from net income for capital expenditures.
E. subtraction from retained earnings for depreciation expense.
114. The extent to which a firm adjusts net income for changes in noncurrent assets and noncurrent liabilities in deriving cash flow from operations under the indirect method depends on the nature of its operations. Service firms will likely show a small amount of
A. subtraction from net income for capital expenditures.
B. addback to net income for capital expenditures.
C. subtraction from net income for depreciation expense.
D. addback to net income for depreciation expense.
E. addback to retained earnings for depreciation expense.
115. The extent to which a firm adjusts net income for changes in noncurrent assets and noncurrent liabilities in deriving cash flow from operations under the indirect method depends on the nature of its operations. Rapidly growing firms usually
A. show an addback for deferred tax expense.
B. show a subtraction for deferred tax expense.
C. show no adjustments for deferred tax expense.
D. disclose such changes in a supplementary schedule or notes to the financial statements.
E. disclose such changes in managements’ discussion and analysis.
116. The extent to which a firm adjusts net income for changes in noncurrent assets and noncurrent liabilities in deriving cash flow from operations under the indirect method depends on the nature of its operations. Firms that stop growing or that shrink usually
A. show an addback for deferred tax expense.
B. show a subtraction for deferred tax expense.
C. show no adjustments for deferred tax expense.
D. disclose such changes in a supplementary schedule or notes to the financial statements.
E. disclose such changes in managements’ discussion and analysis.
117. The extent to which a firm adjusts net income for changes in noncurrent assets and noncurrent liabilities in deriving cash flow from operations under the indirect method depends on the nature of its operations Firms that grow or diversify by acquiring minority ownership positions in other businesses will often show
A. an addition to net income for equity in undistributed earnings.
B. a subtraction from net income for equity in undistributed earnings.
C. an addition to net income for equity in distributed earnings.
D. a subtraction from net income for equity in distributed earnings.
E. a subtraction from retained earnings for equity in undistributed earnings.
118. The extent to which a firm adjusts net income for changes in noncurrent assets and noncurrent liabilities in deriving cash flow from operations under the indirect method depends on the nature of its operations. Firms that decrease in size will usually show
A. additions or subtractions for losses and gains on the disposal of assets.
B. additions, only for gains on the disposal of assets.
C. subtractions, only for losses on the disposal of assets.
D. no adjustment for losses and gains on the disposal of assets.
E. none of the above
119. The adjustment for changes in operating working capital accounts depends in part on a firm’s rate of growth. Rapidly growing firms usually experience significant increases in.
A. accounts receivable, only.
B. inventories, only.
C. accounts receivable and inventories.
D. neither accounts receivable, nor inventories.
E. none of the above
120. The adjustment for changes in operating working capital accounts depends in part on a firm’s rate of growth. Some firms use suppliers or other creditors to finance these working capital needs, which are
A. classified as operating activities.
B. classified as financing activities.
C. classified as investing activities.
D. disclosed in a supplementary schedule or notes to the financial statements.
E. disclose such changes in managements’ discussion and analysis.
