Match Each Term with the Appropriate Definition

question 219

Multiple Choice

Match each term with the appropriate definition.Not all definitions will be used.
-Financing Activities

• A)A measure of the amount by which current assets exceed current liabilities.
• B)Cash inflows and outflows related to the sale or purchase of investments and long-lived assets.
• C)Include assets that are very liquid and are purchased by the entity within three months of maturity.
• D)These activities include only purchases made with borrowed funds.
• E)Must include cash paid for interest and income tax in a separate schedule.
• F)Measures the ability of a company to finance its interest payments with its operating cash flow before taxes and interest.
• G)Cash inflows and outflows related to financing sources external to the company (owners and lenders).
• H)These activities include money lent by a company as well as money borrowed by a company.
• I)Reports the components of cash flows from operating activities as gross receipts and gross payments.
• J)This ratio uses net income instead of operating cash flow to analyze a company's ability to finance the cost of its debt.
• K)Cash inflows and outflows related to components of net income.
• L)Presents the operating activities section of the cash flow statement by adjusting net income to compute cash flows from operating activities.

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Definitions:

Statistic

A statistic is a numerical measurement describing some characteristic of a sample, which is a subset of the population data.

Research Hypothesis

An educated guess or prediction made for the purpose of testing through scientific research, stating a potential outcome or relationship.

Critical Values

Thresholds in hypothesis testing which, if exceeded by the test statistic, indicate that the null hypothesis can be rejected.

Standard Deviation

A metric that quantifies how spread out a dataset is in comparison to its average value.