5 of 24 An advantage to financing the acquisition of assets with debt is that O A. interest does not have to be paid until the maturity date. O B. dividends are tax deductible. O C. interest is tax deductible. O D. dividends reduce retained earnings whereas interest expense does not reduce retained earnings. Unsure 7 of 24 Which of the following transactions would be reported on the statement of cash flows as an investing activity? O A. The issuance of additional common shares. B. The purchase of equipment in exchange for a note payable. O C. The repayment of a long-term note payable O D. The purchase of investments for cash. O E. The increase in accounts receivable due to sales on account. Clear my choice Unsure 8 of 24 Who has primary responsibility for ensuring that the financial statements of a Canadian publicly accountable enterprise follow International Financial Reporting Standards? O A. The company's shareholders O B. The company's management O C. The Canadian Accounting Standards Board (ACSB) w O D. Independent auditors (CPAs) O E. Canadian Securities Administrators (CSA) Unsure 9 of 24 Which of the statements below is considered incorrect regarding the relationship between depreciation and cash? O A. Depreciation is an allocation of the cost of an asset to the periods in which the asset is used. O B. Accumulated depreciation is not a pile of cash waiting to be used. nasce O C. Recording depreciation expense provides a means of setting aside cash for the replacem O D. Depreciation does not generate cash. Unsure