$5-$ Financing activities include $($a$)$ the purchase and sale of long$-$term assets, $($b$)$ the

purchase and sale of short$-$term investments, and $($c$)$ lending and collecting on loans.

True or false

$6-$ internal users of the statement of cash flows often use cash flow information to

plan day to day operating activities and make long term investment and financing

decisions.

True or false

$7-$ A cash equivalent is:

a$.$ Is not considered highly liquid.

b$.$ Close to its maturity date but its market value may still be affected by interest

rate changes.

c$.$ Another name for cash.

d$.$Generally within $12$ months of its maturity date.

e$.$ An investment readily convertible to a known amount of cash.

$8-$ The appropriate section in the statement of cash flows for reporting the cash

payment of wages is:

a$.$Investing activities.

b$.$This is not reported on the statement of cash flows.

c$.$Operating activities.

d$.$Schedule of noncash investing or financing activity.

$9-$ A company's transactions with its creditors to borrow money and$/$or to repay the

principal amounts of both short$-$ and long$-$term debt are reported as cash flows

from:

a$.$Operating activities.

b$.$Indirect activities.

c$.$Financing activities.

d$.$Investing activities.

e$.$Direct activities.