1) The primary objective of the statement of cash flows is to A) disclose changes in working capital over a period of time B) provide information about a company's cash receipts and cash payments for operating, financing, and investing activities over a period of time C) discose changes in asset and equity accounts over a period of time D) provide information about a company's cash-basis revenue and expenses activities over a period of time 2) Which of the following is not a required section of the cash flow statement? A) financing activities section B) operating activities section funding activities section D) investing activities section 3) The conceptual model for the statement of cash flows is based on which of the following equations? A) Net Income - Revenues - Expenses + Gains - Losses (B) Cash Flows Operating Activities + Financing Activities - Investing Activities C) Assets Liabilities + Equity D) Change in Retained Earnings = Net Income - Dividends 4) A company borrows $10,000 and signs a 90-day nontrade note payable How would this event be reflected in the statement of cash flows? A) cash inflow from financing activities B) cash outflow from investing activities C) cash outflow from financing activities D) cash inflow from investing activities 5) Which of the following is a cash outflow from investing activities? A) payment of dividends B) purchase of merchandise inventory C) lending cash D) proceeds from sale of fixed assets 6) Which of the following items would be reported in the financing activities section of the statement of cash flows? A) receipt of cash from note receivable B) receipt of dividends C) lending cash to a customer D) payment of dividends 7) When preparing the statement of cash flows using the indirect method, which of the following is addal to net income to determine cash flows from operations? A) payments to suppliers B) bond premium amortization unrealized losses from trading securities D) receipts from customers