ADVENTIS Exam with Complete
Solutions | Already Passed| Verified
A decrease in ______________ represents a source of cash and would be represented on the cash flow
statement as a positive number; an increase in ______________, however, represents a use of cash and
would be represented on the cash flow statement as a negative number
Share Repurchase - ✔✔The reacquisition by an organization of its own stock, which is either retired
or kept as treasury stock;
a form of returning capital to shareholders that can be instituted irregularly rather than a normal
dividend program—
When ________ are __________________, the remaining shareholders have a higher ownership
recentage and portion of earnings
Dividends - ✔✔Distribution of cash to current shareholders; unlike share repurchases, this does
not affect ownership percentages and represents a pure "check" to shareholders—
This value is most often derived from a ____________ per share amount as directed by an organization's
board of directors.....
, Companies with stable cash flows might choose to institute a _____________ program to constantly
return cash to shareholders, but this become "sticky" and expected....
Downgrading or removing a _______________ program can signal trouble for a company....
Change in Debt - ✔✔Represents any debt inssurances or repayments
EBITDA - ✔✔Gives an indication of a company's current operational profitability; widely used when
comparing profitability between companies in a wide range of industries to determine performance
Free Cash Flow - ✔✔Most commonly calculated as CFO (less) CapEx;
a way of looking at a company's cash flow to see what is available for distribution to creditors
and shareholders
Liquidity Ratios - ✔✔Indicates a company's ability to meet its short-term financial obligations; umbrella
term to describe Current and Cash ratios
Efficiency Ratios - ✔✔Indicate how effectively a company utilizes its assets; umbrella term to
describe Days Receivable and Asset Turnover
Profitability Ratios - ✔✔Provides insight into the profits made by a company relative to its assets,
equity, or revenue; umbrella term to describe Gross Margin, Operating Margin, Net Margin, and Return
on Equity
Solutions | Already Passed| Verified
A decrease in ______________ represents a source of cash and would be represented on the cash flow
statement as a positive number; an increase in ______________, however, represents a use of cash and
would be represented on the cash flow statement as a negative number
Share Repurchase - ✔✔The reacquisition by an organization of its own stock, which is either retired
or kept as treasury stock;
a form of returning capital to shareholders that can be instituted irregularly rather than a normal
dividend program—
When ________ are __________________, the remaining shareholders have a higher ownership
recentage and portion of earnings
Dividends - ✔✔Distribution of cash to current shareholders; unlike share repurchases, this does
not affect ownership percentages and represents a pure "check" to shareholders—
This value is most often derived from a ____________ per share amount as directed by an organization's
board of directors.....
, Companies with stable cash flows might choose to institute a _____________ program to constantly
return cash to shareholders, but this become "sticky" and expected....
Downgrading or removing a _______________ program can signal trouble for a company....
Change in Debt - ✔✔Represents any debt inssurances or repayments
EBITDA - ✔✔Gives an indication of a company's current operational profitability; widely used when
comparing profitability between companies in a wide range of industries to determine performance
Free Cash Flow - ✔✔Most commonly calculated as CFO (less) CapEx;
a way of looking at a company's cash flow to see what is available for distribution to creditors
and shareholders
Liquidity Ratios - ✔✔Indicates a company's ability to meet its short-term financial obligations; umbrella
term to describe Current and Cash ratios
Efficiency Ratios - ✔✔Indicate how effectively a company utilizes its assets; umbrella term to
describe Days Receivable and Asset Turnover
Profitability Ratios - ✔✔Provides insight into the profits made by a company relative to its assets,
equity, or revenue; umbrella term to describe Gross Margin, Operating Margin, Net Margin, and Return
on Equity
