Question : Learning Objective 9-7 1) Negative cash flow from investing activities the : 1253016

Learning Objective 9-7

1) Negative cash flow from investing activities on the statement of cash flows means that a company has ________.

A) paid a large cash dividend to shareholders

B) paid more for operating expenses than it collected from customers

C) sold additional shares of common stock

D) bought additional property, plant and equipment

2) Positive cash flow from investing activities on the statement of cash flows means that a company has ________.

A) paid a large cash dividend to shareholders

B) paid more for operating expenses than it collected from customers

C) sold additional shares of common stock

D) sold property, plant and equipment

3) Negative cash flow from financing activities on the statement of cash flows means that a company has ________.

A) paid a large cash dividend to shareholders

B) paid more for operating expenses than it collected from customers

C) sold additional shares of common stock

D) bought additional property, plant and equipment

4) Positive cash flow from financing activities on the statement of cash flows means that a company has ________.

A) paid a large cash dividend to shareholders

B) paid more for operating expenses than it collected from customers

C) sold additional shares of common stock

D) bought additional property, plant and equipment

5) Positive cash flow from operating activities on the statement of cash flows means that a company has ________.

A) paid a large cash dividend to shareholders

B) collected more from customers than it paid for operating expenses

C) sold additional shares of common stock

D) bought additional property, plant and equipment

6) Negative cash flow from financing activities on the statement of cash flows most likely indicates a company is ________.

A) borrowing more than it is paying off

B) buying more long-term assets than it is selling

C) paying off more of its debts than it is borrowing

D) in poor financial health

7) Positive cash flow from financing activities on the statement of cash flows most likely indicates a company is ________.

A) borrowing more than it is paying off

B) buying more long-term assets than it is selling

C) paying off more of its debts than it is borrowing

D) in poor financial health

8) Negative cash flow from investing activities on the statement of cash flows most likely indicates a company is ________.

A) borrowing more than it is paying off

B) buying more long-term assets than it is selling

C) paying off more of its debts than it is borrowing

D) in poor financial health

9) Negative cash flow from operating activities on the statement of cash flows most likely indicates a company is ________.

A) borrowing more than it is paying off

B) buying more long-term assets than it is selling

C) paying off more of its debts than it is borrowing

D) in poor financial health

10) The statement of cash flows helps analysts to evaluate a company’s ability to ________.

A) pay amounts owed

B) invest in long-term assets

C) collect accounts receivable

D) all of these