26. Purchased land for cash. A) Investing activities section B) Operating activities section C) Does not represent a cash flow D) Financing activities section 27. Purchased land and building with a mortgage. A) Operating activities section B) Financing activities section C) Does not represent a cash flow D) Investing activities section 28. Issued common stock for cash. A) Operating activities section B) Investing activities section C) Financing activities section D) Does not represent a cash flow 29. Paid income taxes. A) Financing activities section B) Investing activities section C) Does not represent a cash flow D) Operating activities section 30. Cash equivalents are highly-liquid investments that have maturities of less than three months. A) True B) False 31. An unfavorable labor quantity variance may be caused by A) worker fatigue or carelessness. B) paying workers higher wages than expected. C) misallocation of workers. D) higher pay rates mandated by union contracts. Version 2 Page 6