18) The premium on bonds payable: a) represents the increase in interest expense over the life of the bonds b) represents a decrease in interest expense over the life of the bonds c) decreases interest expense to the effective interest rate d) both (b) and (c) are correct e) none of the above. 19) Interest received on investment is classified on Statement of Cash Flows as: a. Financing activity b Operating activity c investing activity d. Non-cash investing and Financing activity e None of the above 20). Purchase of treasury stocks is classified on SCF as a. Operating activity b. Financing activity c. Investing activity d. Non-cash investing and Financing activity. e. None of the above