According to the 2011 Edition of Accounting Trends and Techniques

question 107

Multiple Choice

According to the 2011 edition of Accounting Trends and Techniques, approximately what percentage of companies use the direct method to report cash flows provided by operating activities?

• A)2%
• B)33%
• C)67%
• D)98%

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Definitions:

Quick Ratio

A financial metric that measures a company's ability to meet its short-term obligations with its most liquid assets.

Liquidity

The ease with which an asset can be converted into cash without affecting its market price.

Current Ratio

Current assets divided by current liabilities.

Inventory Turnover

Sales divided by total inventory.