1. Analysts commonly misconceive which of the following financial statements as the least prone to manipulation?

A. Balance sheet

B. Profit and loss statement

C. Cash flow statement

 

2. If a company with constant sales slows down the payment rate to suppliers then which of the following will be the most likely consequence?

A. Days sales payable will increase.

B. Cost of goods sold will increase.

C. Accounts payable will decrease.

 

3. At the end of the first quarter, Dell Co. had cost of goods sold of USD 150 million with an accounts payable of USD 120 million. At the end of the second quarter, the company had cost of goods sold of USD 150 million with an accounts payable of USD 115 million. Assuming that the first and second quarters have 89 and 93 days respectively, the most likely conclusion from this information is that Dell Co. has:

A. Slowed its rate of payment to suppliers.

B. Accelerated its rate of payment to suppliers.

C. Not changed its rate of payment to suppliers.

 

Answers: SelectShow

 

 

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