2 Topic 2 Quiz

Due Sep 19 at 11:59pm Points 10 Questions 10 Available Sep 8 at 12am - Sep 19 at 11:59pm 12 days Time Limit None

This quiz was locked Sep 19 at 11:59pm.

Attempt History
Attempt Time Score
LATEST Attempt 1 38 minutes 10 out of 10

Score for this quiz: 10 out of 10

Submitted Sep 18 at 12:26am
This attempt took 38 minutes.

Question 1 1 / 1 pts

Conceptually, capital cost allowance (CCA) is to tax like depreciation is to accounting.

Correct!
True

False

Question 2 1 / 1 pts

Statement of financial position is best described as a financial statement summarizing a firm's performance over a period of time.

True

Correct!
False

Question 3 1 / 1 pts

Adding a firm's current assets and its current liabilities will provide net working capital.

True

Correct!
False

Question 4 1 / 1 pts

According to generally accepted accounting principles (GAAP), assets are generally shown on financial statements at historical cost.

Correct!
True

False

Question 5 1 / 1 pts

The components within the Statement of Financial Position (i.e. Assets, Liabilities/ Equity, Net Working Capital) can each be linked to one of our
Fundamental Finance questions.

Correct!
True

False

Question 6 1 / 1 pts
 In Canada, publicly traded companies are required to report their financial statements under International Financial Reporting Standards.

Correct! True

False

Question 7 1 / 1 pts

Doraz Corporation had beginning fixed assets of $3,500, ending fixed asset of $4,800 and depreciation expense of $200. Given this information,
determine the net capital spending.

$1,200

$1.300

$1,400

Correct! $1,500

$1,600

Question 8 1 / 1 pts

Gladstone Corporation had OCF of $250, net capital spending of $500 and an increase in net working capital of $150. Given this information,
determine its cash flow from assets.

Correct! $(400)

$(100)

$800

$(800)

$400

Question 9 1 / 1 pts

Dockers Inc. has beginning long-term debt of $180 and ending long-term debt of $210. The interest paid is $30. What is the amount of the cash
flow to creditors?

$(10)

Correct! $0

$10

$40

$50

Question 10 1 / 1 pts

Jack's Shoes has EBIT of $19,600 and owes $8,650 in taxes for the year. The depreciation expense was $420 and the interest expense was
$600. What is the operating cash flow (OCF) for the year?
A. $10,770
B. $19,370
C. $11,370
D. $28,670
E. $29,320

$10,770
 $19,370

Correct!
$11,370

$28,670

$29,320

Quiz Score: 10 out of 10