1. Cash paid to purchase long-term investments would be reported in the statement of cash flows in

a. the cash flows from operating activities section

b. the cash flows from financing activities section

c. the cash flows from investing activities section

d. a separate schedule

2. Which of the following is a noncash investing and financing activity?

a. payment of a cash dividend

b. payment of a six-month note payable

c. purchase of merchandise inventory on account

d. issuance of common stock to acquire land

3. Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method?

a. an increase in inventory

b. a decrease in accounts payable

c. preferred dividends declared and paid

d. a decrease in accounts receivable

4. Which one of the following below should be added to net income in calculating net cash flow from operating activities using the indirect method?

a. a gain on the sale of land

b. a decrease in accounts payable

c. an increase in accrued liabilities

d. dividends paid on common stock