The higher a company’s debt ratio, the lower the risk of a company not being able to meet its obligations.

The indirect method separately lists each major item of operating cash receipts and cash payments.

A revenue account normally has a debit balance.

Bagram Corporation had a net decrease in cash of $10,000 for the current year. Net cash used in investing activities was $52,000 and net cash used in financing activities was $38,000. What amount of cash was provided (used) in operating activities?

In horizontal analysis the percent change is computed by:

If assets are $365,000 and equity is $120,000, then liabilities are:

The ability to generate future revenues and meet long-term obligations is referred to as:

If assets are $365,000 and equity is $120,000, then liabilities are:

Dividends always decrease equity.

The rule that (1) requires revenue to be recognized at the time it is earned, (2) allows the inflow of assets associated with revenue to be in a form other than cash, and (3) measures the amount of revenue as the cash plus the cash equivalent value of any noncash assets received from customers in exchange for goods or services, is called the: