13. Financing activities include (a) the purchase and sale of long-term assets, (b) the purchase and sale of short-term investments and (e) lending and collecting on loans. True False 14. Both cash dividends received and interest received are considered to be investing inflows. True False 15. The payment of cash dividends to shareholders is classified as a financing activity True False Multiple Choice: 1 point each 1. Plant assets are: A. Tangible assets used in the operation of a business that have a useful life of more than one accounting period B. Current assets C. Held for sale D. Intangible assets used in the operations of a business that have a useful life of more than one accounting period E. Tangible assets used in the operation of business that have a useful life of less than one accounting period 2. Plant assets are: A. Current assets B. Used in operations C.Natural resources D. Long-term investments E. Intangible A. Measures the decline in market value of an asset B. Measures physical deterioration of an asset C. Is the process of allocating to expense the cost of a plant asset D. Is an outflow of cash from the use of a plant asset E. Is applied to land 4. The useful life of a plant asset is: A. The length of time it is used productively in a company's operations B. Never related to its physical life C. Its productive life, but not to exceed one year D. Determined by the FASB E. Determined by law 5. Inadequacy refers to: A. The isuicient cacplant assets to meet he company's growing capacity of a company's plant production demands B. An asset that is worn out C. An asset that is no longer useful in producing goods and services D. The condition where the salvage value is too small to replace the asset E. The condition where the asset's salvage value is less than its cost