When Analyzing the Changes on a Spreadsheet Used to Prepare

question 84

Multiple Choice

When analyzing the changes on a spreadsheet used to prepare a statement of cash flows,the cash flows from financing activities generally affect:

• A)Net income,current assets,and current liabilities.
• B)Noncurrent assets.
• C)Noncurrent liability and equity accounts.
• D)Both noncurrent assets and noncurrent liabilities.
• E)Equity accounts only.

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Definitions:

Per Share FCFE

Free Cash Flow to Equity per share, indicating the amount of cash available to equity shareholders per share after expenses, reinvestment, and debt payments.

Required Rate of Return

The minimum annual percentage return on an investment deemed acceptable by an investor or creditor.

Per Share FCFE

Free Cash Flow to Equity per share; a measure of how much cash is available to the equity shareholders of a company on a per share basis.

Required Return

The minimum percentage return an investor expects or requires from an investment to make it worthwhile.