Question 2a) The financial markets are comprised of the \"money\" and capital\"

Question

Question 2a) The financial markets are comprised of the "money" and capital" markets, stocks and bonds are examples of "money" market instruments and are generally considered to be safe from a risk perspective.

True

False

Question 2b)

The cash conversion cycle is best described as:

the process of selling the product

the process of converting product into cash and then cash into more product

the process of collecting cash for sales

the process of investing cash into new product inputs

Question 2c)

The statement of cash flow is divided into the following sections:

Operating activities and investing activities

Operating activities, financing activities, and equity activities

Operating activities; investing activities, and equity activities

Operating activities, financing activities; and investing activities

Question 2d)

If a firm has no debt, then ROA is ____ ROE.

less than

equal to

greater than

not comparable to

Question 2e)

Cash flow from operating activities is increased by:

depreciation and amortization

a decrease in accounts receivable

a decrease in inventory

an increase in accounts payable

all of the above

Question 2f)

In which problem which we have reviewed so far did the firm have a problem with the increase in receivables and inventory outstripped the growth in revenue?

Sussman

Meier

Walgreens

Waterford

True

False

Explanation / Answer

Q2a       False stocks and bonds are examples of "Capital" market instruments   Q2b the process of converting product into cash and then cash into more product Q2c Operating activities, financing activities; and investing activities Q2d   ROA is less than ROE Q2e all of the above Q2f Data insufficient to answer this part

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