TRUE or FALSE E. A highly liquid asset is one that is easily converted to cash.
ID: 2814627 • Letter: T
Question
TRUE or FALSE
E. A highly liquid asset is one that is easily converted to cash.
F. All else being equal, an increase in a company's cost of goods sold will increase its gross margin.
G. Suppose your firm extends 2/15 net 30 trade credit to its customers. Barring liquidity issues, your firm's customers will likely wait the full 30 days to pay for their goods.
H. For any given period, a company's earnings after tax must equal its after-tax cash flow.
I. Depreciation causes (all else being equal)
a corporation’s earnings after tax to be higher than its cash flow.
a corporation’s earnings after tax to be lower than its cash flow.
a corporation’s earnings after tax to equal its cash flow.
cannot be determined.
i.a corporation’s earnings after tax to be higher than its cash flow.
ii.a corporation’s earnings after tax to be lower than its cash flow.
iii.a corporation’s earnings after tax to equal its cash flow.
iv.cannot be determined.
Explanation / Answer
E. TRUE
F. FALSE
G. FALSE
H. FALSE
I. option ii - Depreciation causes a corporation’s earnings after tax to be lower than its cash flow
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.