2-Hanes Company sells debt investments costing $26,000 for $28,000. In journalizing the sale, credits are to; (a) Debt Investments and Loss on Sale of Debt Investments. (b) Debt Investments and Gain on Sale of Debt Investments, (c) Stock Investments and Gain on Sale of Stock Investments. (d) No correct answer is given. 3-Pryor Company receives net proceeds of $42,000 on the sale of stock investments that cost $39,500. This transaction will result in reporting in the income statement a: (a) loss of $2,500 under Other expenses and losses." (b) loss of $2,500 under Operating expenses.. (c) gain of $2,500 under "Other revenues and gains." (d) gain of $2,500 under "Operating revenues." 4-You have a controlling interest if: (a) you own more than 20% of a company's stock. (b) you are the president of the company. (c) you use the equity method. (d) you own more than 50% of a company's stock. 5-Which of the following is incorrect about the statement of cash flows? (a) It is a fourth basic financial statement. (b) It provides information about cash receipts and cash payments of an entity during a period. (c) It reconciles the ending cash account balance to the balance per the bank statement. (d) It provides information about the operating, investing, and financing activities of the business. 6-The statement of cash flows classifies cash receipts and cash payments by these activities: (a) operating and monoperating. (b) investing, financing, and operating. (c) financing, operating, and nonoperating. (d) inyesting, financing, and nonoperating