true or false

2) Financing activities include receiving cash from issuing debt and receiving cash dividends from investments in other companies' stocks 13) The payment of cash div 4) Equipment costing $100,000 with idends never changes the balance of retained earnings. accumulated depreciation of $40,000 is sold at a loss of $10,000. This implies that $40,000 cash was received from the sale. cash lows reports and proves the net change in cash for a reporting period. 16) A cash equivale nt must be readily convertible to a known amount of cash, and must be sufficiently close to its maturity so its market value is unaffected by interest rate changes. 17) Business activities that generate or use cash are classified as operating, investing. or financing activities on the statement of cash flows. 18) Financing activities include (a) the purchase and sale of long-term assets, (b) the purchase and sale of short-term investments, and (e) lending and collecting on loans. 19) Investing 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. 20) Cash paid for merchandise is an operating activity. 21) The purchase of stock in another company is classified as a financing activity 22) Receipts of cash dividends and interest earned on loans are classified as investing activities 23) The cash flows from operating activities section of an indirect method of cash flows begins with net income or loss. 24) Since it is recommended by the FASB, the direct method of preparing the statement of cash flows is most frequently used. 25) Information to prepare the statement of cash flows usually comes from (a) comparative balance sheets, (b) current income statement, and (c) additional information