1. Which of the following would be classified as a cash outflow for investing activities?

1. payment of accounts payable
2. cash paid for acquisition of property, plant, and equipment
3. sale of available-for-sale securities
4. payment of dividends

2. Paying the salaries of employees would be classified as

1. an operating activity.
2. an investing activity.
3. a financing activity.
4. a noncash investing and financing activity.

3. The payment of dividends would be classified as

1. an operating activity.
2. an investing activity.
3. a financing activity.
4. a noncash investing and financing activity.

4. The indirect method of presenting cash flows from operating activities begins with

1. a listing of the inflows of cash from operating activities.
2. a listing of the outflows of cash for operating activities.
3. the balance in the Cash account.
4. net income.

5. The direct method of presenting cash flows from operating activities begins with

1. a listing of the inflows of cash from operating activities.
2. a listing of the outflows of cash for operating activities.
3. the balance in the Cash account.
4. net income.

6. In the adjustments to convert net income to net cash flow from operating activities, which of the following would be added to net income?

1. A decrease in accounts receivable.
2. An increase in accounts payable.
3. Depreciation expense.
4. All of these choices.