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Knowledge Check 4

Knowledge Check 4

Q • Question 1 0 out of 0.4 points The BesTest Sprinkler Company engaged in the following Financing Activities during the year 2020: • Issuance of new Debt $ 10,000,000 • Repayment of Debt $7,000,000 • Payment of Dividends $750,000 • Sale of Stock $2,500,000 What are the Net Borrowings? • Question 2 0.4 out of 0.4 points Free Cash Flow is defined as: • Question 3 0.4 out of 0.4 points Capital Expenditures is the amount spent for contract labor used in the business, and reported under Cash for Investing. • Question 4 0.4 out of 0.4 points Which of the following transactions does NOT lower Cash: • Question 5 0 out of 0.4 points Most small businesses, and all large ones, favor accrual basis books over cash basis books for all of the following reasons EXCEPT:

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1. A. $ 3,000,000 2. A. A measure of ongoing cash flow from normal business activities (including CapEx) 3.False 4. D. Receiving money from investors 5. C. Accrual basis accounting always shows a higher profit than cash basis of accounting.