8. GAAP requires held-to-maturity investments to be reported at their A. Historical cost. C. Net realizable value. B. Fair value. D. Amortized cost. 9. Growth firms generally pay regular dividends to stockholders. A True. B. False. 10. In order to maintain a record of the original cost of a trading security, the fair value adjustments are debited or credited to the account Valuation Allowance for Investment. A True B. False. 11. The statement of cash flows is not one of the basic financial statements. A True. B. False. 12. The statement of cash flows reports a company's sources of cash inflows and cash outflows for a period. A. True. B. False. 13. Which of the following would be classified as an operating activity on the statement of cash flows. A Sales revenue C. Depreciation expense. B. Income taxes expense D. All of the above 14. A ten-year bond was issued at face value for $500,000 cash. This transaction should be shown on the statement of cash flows under A. Operating activities, B. Investing activities. C Financing activities D. Both Band C above. 15. Which of the following types of transactions would be reported as a cash flow from investing activity on the statement of cash flows? A. Purchase of common stock B. Issuance of bonds payable. C. Purchase of fixed assets. D. Both A and B above. 16. Cash flows from financing activities, as part of the statement of cash flows, include payment for dividends. A True. B. False