40. Which of the following is an example of cash equivalents? a. Saving ecocounts b. Currencies c. Bank drafts d. Money orders c. Treasury bills 41. Which of the following is true of statement of cash flows? a. It is not required to be presented under U.S. GAAP. b. It connects income statement and balance sheet. c. It is considered to be the least important financial statement by the investors. d. Ir classifies cash flows into three different activities. c. Ir uses ending T-account balances to determine the cash flows. 42. Which of the following statements is true? 2. Stock dividends and stock splits are included in the financing activities section of the statement of cash flow. b. Growing companies normally expect cash flows from investing activities to be negative. c. Investing activities section activities result from the primary function of the business. d. Investors prefor to see a net outflow of cash from operating activities from year to year. e. In years when a large dividend is distributos or debt is settled, the net figure for financing activities is more likely to be positive. 43. Rufus Corponation manufactures and sells bicycles. During the year, Rufus sold bicycles to customers and collected 58,000,000 in cash. Which type of activity does this transaction represents on a statement of cash flows? a. Openting b. Investing c. Selling d. Significant non-cach c. Promotion 44. Rufus Corporation manufactures and sells bicyoles. During tho year, Rufus sold $00,000 worth of its S1 par value common stock to the publio. Which type of ectivity does this transaction represents on a statement of cach flows? a. Equily b. Investing c. Financing d. Significant non-cadb c. Openting