38. Which of the following items is reported as a financing activity on the statement of cash flows?

Select one:

a. Payment of a stock dividend

b. Stock split

c. Payment of a cash dividend

d. Payment for merchandise

e. Purchase of equipment for cash

39. The payment of interest on a loan borrowed from a bank should be reported on the statement of cash flows as a:

Select one:

a. Investing activity

b. Operating activity

c. Financing activity

d. This is not reported in the statement of cash flows

e. Noncash investing and financing activity

41. Which of the following is not considered an investing activity?

Select one:

a. Sale of short-term investments other than cash equivalents

b. Loaning of money in exchange for notes receivable

c. Purchase of plant assets

d. Sale of plant assets

e. Purchase of treasury stock

4. The following is true about the estimate of depreciation expense for an asset:

Select one:

a. It may be revised based on new information

b. The estimate itself cannot be changed; however, new information should be disclosed in financial statement footnotes

c. Any changes are accumulated and recognized when the asset is sold

d. It cannot be changed

e. It can be changed only if U.S. tax law changes