TEST BANK FOR Analysis for Financial Management 13th Edition,by Robert Higgins ISBN:978-1264112104 COMPLETE GUIDE All CHAPTERS COVERED 100% VERIFIED A+ GRADE ASSURED!!!!! NEW LATEST UPDATE!!!!!

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,Analysis For Financial Management 13th Edition Robert Higgins, Jennifer Ko
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ski, Todd Mitton
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Student name: bn




TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
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1) Current liabilities are defined as liabilities with a maturity of less than one year.
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⊚ true
⊚ false



2) A decline in the Net Property, Plant, and Equipment account between year-
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end 2020 and year-end 2021 is a clear indication that fixed assets were sold during 2021.
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⊚ true
⊚ false



3) When reporting financial performance for tax purposes, U.S. companies prefer to use
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accelerated depreciation methods over the straight-line method.
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⊚ true
⊚ false



4) Accounting rules require U.S. companies to depreciate research and development (R&D)
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expenditures using the straight-line method.
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⊚ true
⊚ false



5) You can construct a sources and uses statement for 2021 if you have a company’s year-
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end balance sheets for 2021 and 2022.
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⊚ true
⊚ false



6) A reduction in long-term debt is a use of cash.
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⊚ true
⊚ false

, 7) The accrual principle requires that revenue not be recognized until payment from a sale is
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received.
⊚ true
⊚ false



8) An increase in cash and cash equivalents should appear as a use of cash on the sources
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and uses statement.
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⊚ true
⊚ false



9) A cash flow statement places each source or use of cash into one of three broad
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categories: operating activities, investing activities, or financing activities.
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⊚ true
⊚ false



10) The cost of equity is usually reported on the income statement right below interest
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expense.
⊚ true
⊚ false



11) The United States was one of the first countries to adopt International Financial
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Reporting Standards.bn




⊚ true
⊚ false



MULTIPLE CHOICE - bn bn




Choose the one alternative that best completes the statement or answers the question.
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12) Which of the following statements concerning a firm’s cash flows and profits is false?
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