1.16) Which of the following sections of the income statement should be reported net of income tax?

a. Income from continuing operations

b. None

c. Income from discontinued operations

d. The entire income statement

1.19) In preparing a statement of cash flows using the indirect method which of the following would be included in the operating activities section ?

a. Payment for the purchase of a building

b. Receipt from the issuance of common stock

c. Depreciation expense

d. Payment of dividends

1.22) Which of the following events would be classified as an investing activity on a statement of cash flows assuming these are all cash transactions?

a. purchase of equipment

b. receipt of cash dividends on an available-for-sale investment

c. purchase of inventory

d. payment of interest on a loan

1.26) In a statement of cash flows, receipts from the issuance of preferred stock is generally classified as:

a. Investing activities

b. selling activities

c. operating activities

d. Financing activities