When net income is low relative to operating cash flows, we describe the firm as having recorded When preparing the statement of cash flows using the indirect method, an increase in inventories would appear as When preparing the statement of cash flows using the indirect method, an increase in accounts payable would appear as When preparing the statement of cash flows using the indirect method, the payment of dividends would appear as When preparing the statement of cash flows using the indirect method, the purchase of equipment would appear as Which of the following companies would you expect to report significant amounts of cash provided by financing activities? Which of the following is a cash flow from operating activities? Which of the following is an adjustment that would need to be made to net income when calculating cash flows from operations under the indirect method? Which of the following is an approximation of a cash-based measure of pretax operating earnings? Which of the following is not an expense excluded when calculating EBITDA?

1. When net income is low relative to operating cash flows, we describe the firm as having
   recorded

income-decreasing accruals

2. When preparing the statement of cash flows using the indirect method, an increase in inventories would appear as

a decrease in the operating activities section

3. When preparing the statement of cash flows using the indirect method, an increase in accounts payable would appear as

an increase in the operating activities section

4. When preparing the statement of cash flows using the indirect method, the payment of dividends would appear as

a use of cash in the financing activities section

5. When preparing the statement of cash flows using the indirect method, the purchase of equipment would appear as

a use of cash in the investing activities section

6. Which of the following companies would you expect to report significant amounts of cash provided by financing activities?

A yet-to-be-profitable biotechnology company

7. Which of the following is a cash flow from operating activities?

Purchase of merchandise for resale

8. Which of the following is an adjustment that would need to be made to net income when calculating cash flows from operations under the indirect method?

add depreciation expense

9. Which of the following is an approximation of a cash-based measure of pretax operating earnings?

EBITDA

10. Which of the following is not an expense excluded when calculating EBITDA?

administrative expense