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Indicate whether each of the following actions is primarily related to (a) acquisition of long-term assets, (b) evaluating the adequacy of financing of long-term assets, or (c) applying the matching rule to long-term assets.

1-Deciding between common stock and long-term notes for the raising of funds

2-Relating the acquisition cost of a long-term asset to the cash flows generated by the asset

3-Determining how long an asset will benefit the company

4-Deciding to use cash flows from operations to purchase long-term assets

5-Determining how much an asset will sell for when it is no longer useful to the company

6-Calculating free cash flows

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M954006

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