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120.Cash investments produced by the operator for the company are claimed about the assertion of cashflows in thea.financing things to do sectionb.investing pursuits sectionc.running things to do sectiond.supplemental statement

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Solution:AIf an owner wanted to know how money flowed into and outside of the corporation, which financialstatement would theowner use?

All of the following statements regarding the ratio of liabilities to operator’s fairness are correct excepta.A ratio of one implies that liabilities equal owner’s equity.b.Organizations can use this ratio but substitute overall stockholders’ fairness for total proprietor’sequity.

c.The upper this ratio, the better equipped a business is to withstand lousy organization situations andpay creditors.d.The lower this ratio, the higher in a position a company is to withstand bad organization disorders andpay creditors.Respond to:C

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All calculations are estimates and offered for informational check here applications only. Real amounts may perhaps vary.

All calculations are estimates and delivered for informational needs only. Real quantities might change.

All calculations are estimates and furnished for informational purposes only. Real amounts may possibly change.

All calculations are estimates and delivered for informational applications only. Precise amounts may perhaps change.

c.The upper this ratio, the better capable a company is to withstand very poor business problems andpay creditors.d.The lower this ratio, the higher ready a company is to face up to bad small business conditions andpay creditors.Reply:C

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