2) The statement of cash flows summarizes a firm's cash flows and outflows over a period of time. A) TRUE B) FALSE 3) Dividend payments to shareholders are classified as operating activities on the statement of cash flows. A) TRUE B) FALSE 4) Purchases of fixed assets are classified as investing activities on the statement of cash flows. A) TRUE B) FALSE 5) In order to sustain operations, a firm must have positive cash flows from operating activities over the long run. A) TRUE B) FALSE 6) Redemption of bonds payable is classified as a financing activity on the statement of cash flows. A) TRUE B) FALSE 7) Cash receipts from interest and dividends are classified as operating activities on a U.S. GAAPbased statement of cash flows. A) TRUE B) FALSE