A company has surplus cash available and decides to purchase a 120-day treasury bill. The correct classification of the treasury bill purchase on the Statement of Cash Flows would be a) as a cash outflow in investing activities. b) as a cash outflow in operating activities. c)as a net change in cash equivalents. d)as a cash outflow in financing activities.

A one-year insurance policy was purchased on March 1 and recorded as Prepaid Insurance. On December 31 of that same year the adjusting journal entry required would include a debit to insurance expense and a credit to cash. a debit to insurance expense and a credit to prepaid insurance. a debit to prepaid insurance and a credit to cash. none of the above. The journal entry to record the purchase, on account, of $10,000 of inventory is Dr. Accounts Payable $10,000 and Cr. Inventory $10,000. Dr. Inventory $10,000 and Cr. Cash $10,000. Dr. Cash $10,000 and Cr. Inventory $10,000. Dr. Inventory $10,000 and Cr. Accounts Payable $10,000