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c. 1. Entity A acquires equipment by issuing shares of stocks. How should Entity A report the transaction in the statement of cash flows? a. Operating activities b. Investing activities c. Financing activities d. Not reported 2. Entity A, a financial institution, received cash dividends from its investments in marketable securities during the year. How will the dividends be presented in Entity A's statement of cash flows? a. as investing activity b. as operating activity as financing activity d. a orb 3. Which of the following statements best describes a statement of cash flows? a. The statement of cash flows is also called the statement of activities. b. The statement of cash flows shows information on an entity's assets, liabilities and equity. c The statement of cash flows shows information on an entity's income and expenses during the period. d. The statement of cash flows shows historical changes of cash and cash equivalents during the period. 4. Which of the following is presented under the investing activities section of a statement of cash flows? a. Collection of accounts receivable b. Cash purchases of inventories c. Purchase of equipment through cash d. Issuance of share capital through cash 5. Which of the following cash flows is presented in the operating activities section of a statement of cash flows? a. Cash receipts from issuing shares or other equity instruments and cash payments to redeem them b. Cash receipts and other short-term or long-term borrowings, and their repayments c. Cash receipts from the sale of goods, rendering of services, or other forms of income d. Cash payments by a lessee for the reduction of the outstanding liability relating to a lease