1. Which of the following activities would be classified as an investing activity?

a. Cash received from customers

b. Cash payments to suppliers

c. Cash dividends paid

d. Cash paid to reacquire common stock

e. None of the above

2. The purchase of machinery by issuing a long-term note would be disclosed in the statements of cash flows in the ______________ section.

a. Operating

b. Investing

c. Financing

d. It is disclosed in a supplemental schedule - not part of the statement of cash flows.