Question : 121. The adjustment for changes in operating working capital accounts depends : 1245796

121. The adjustment for changes in operating working capital accounts depends in part on a firm’s rate of growth. Some firms use short- or long-term borrowing or equity financing, which is 
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.

122. The product life-cycle concept from microeconomics and marketing provides useful insights into the relations between cash flows from operating, investing, and financing activities. During the introduction phase 
A. cash inflow exceeds cash outflow for operations .
B. cash outflow exceeds cash inflow for operations.
C. cash inflow exceeds cash outflow for investing activities.
D. cash outflow exceeds cash inflow for financing activities.
E. cash inflow exceeds cash outflow for financing activities.

123. The product life-cycle concept from microeconomics and marketing provides useful insights into the relations between cash flows from operating, investing, and financing activities. During the introduction phase 
A. cash inflow exceeds cash outflow for operating activities.
B. cash inflow exceeds cash outflow for investing activities.
C. cash outflow exceeds cash inflow for financing activities
D. cash outflow exceeds cash inflow for investing activities.
E. cash inflow exceeds cash outflow for financing activities

124. The product life-cycle concept from microeconomics and marketing provides useful insights into the relations between cash flows from operating, investing, and financing activities. During the introduction phase 
A. cash inflow exceeds cash outflow for operations.
B. cash inflow exceeds cash outflow for investing activities.
C. cash outflow exceeds cash inflow for financing activities.
D. cash inflow exceeds cash outflow for financing activities.
E. cash outflow exceeds cash inflow for investing activities.

125. The product life-cycle concept from microeconomics and marketing provides useful insights into the relations between cash flows from operating, investing, and financing activities. During the growth phase 
A. cash inflow exceeds cash outflow for operations.
B. cash outflow exceeds cash inflow for operations.
C. cash inflow exceeds cash outflow for investing activities.
D. cash outflow exceeds cash inflow for financing activities.
E. cash inflow exceeds cash outflow for financing activities.

126. The product life-cycle concept from microeconomics and marketing provides useful insights into the relations between cash flows from operating, investing, and financing activities. During the maturity phase 
A. cash inflow exceeds cash outflow for operations.
B. cash outflow exceeds cash inflow for operations.
C. cash outflow exceeds cash inflow for investing activities
D. cash inflow exceeds cash outflow for financing activities
E. cash inflow exceeds cash outflow for investing activities.

127. The product life-cycle concept from microeconomics and marketing provides useful insights into the relations between cash flows from operating, investing, and financing activities. When a product matures 
A. net income usually reaches a peak.
B. working capital declines.
C. operations generate negative cash flow.
D. all of the above.
E. none of the above.

128. The product life-cycle concept from microeconomics and marketing provides useful insights into the relations between cash flows from operating, investing, and financing activities. When a product matures, 
A. operations generate positive cash flow, enough to finance expenditures on property, plant, and equipment.
B. firms use the excess cash flow to repay borrowing from the introduction and growth phases and to begin paying dividends to shareholders.
C. capital expenditures usually maintain, rather than increase, productive capacity.
D. all of the above
E. none of the above

129. The product life-cycle concept from microeconomics and marketing provides useful insights into the relations between cash flows from operating, investing, and financing activities. At the beginning of the decline phase, 
A. profitability increases.
B. accounts receivable decline.
C. inventories increase.
D. all of the above.
E. none of the above.

130. The product life-cycle concept from microeconomics and marketing provides useful insights into the relations between cash flows from operating, investing, and financing activities. The beginning of the decline phase can produce 
A. negative cash flow from operations.
B. sales of unneeded property, plant, and equipment can result in negative cash flow from investing activities.
C. excess cash flow to repay remaining debt or diversify into other areas of business.
D. all of the above
E. none of the above