D E T M OR P When making a year-end adjusting entry for interest on a Note Payable, the accountant will always make a credit to Cath. A bond sinking fund account is categorized as a long-term asset and the balance never changes until the bond payable matures (becomes due). All types of preferred stock will always be paid dividends in arrears. Treasury Stock is an current asset. When a company sells common stock, the common stock account will record the par value of stock sold and the Additional Paid in Capital will record the remainder According to Dr. B, the most important number on a Cash Flow Statement is the amount shown as "Cash Flowing from investing Activities". In the Rule #1 stock valuation methods, Margin of Safety Price is based on earnings whereas Payback Time Price is based on free cash flow. The amount of Income Tax Expense on the Income Statement will always be the amount of income tax owed to tax authorities. Premiums and discounts on Bonds Payable arise due to differences between the market interest rate and the coupon interest rate on the bond on the date of the salu According to Dr. B, long-term use of stock buybacks may result in negative Stockholder's Equity. If a company issues common stock to generate cash, is this properly shown in the financing section of the Cash Flow Statement? Is payment of dividends properly shown in the Investing section of the Cash Flow Statement