1) The appropriate section in the statement of cash flows for reporting the cash received from the issuance of a long-term note payable is:

Select one:

A. Financing activities.

B. This is not reported on the statement of cash flows.

C. Operating activities.

D. Investing activities.

E. Schedule of noncash investing or financing activity.

2) 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.

Select one:

True

False

3) The price-earnings ratio is calculated by dividing:

Select one:

A. Dividends per share by market value per share.

B. Market value per share by dividends per share.

C. Earnings per share by market value per share.

D. Dividends per share by earnings per share.

E. Market value per share by earnings per share.