Cash equivalents are securities that a. have maturity dates of three months or less. b. are denominated in a recognized national currency. c. management intends to convert into cash within one year. d. management intends to convert into cash within the normal operating cycle. Which of the following events would be classified as an investing activity on a statement of cash flows? a. receipt of cash dividends on an available-for-sale investment b. purchase of inventory c. payment of interest on a loan d. sale of an office building at a gain The income statement is an important financial statement for all of the following reasons, except a. the income statement reports the amount of net cash inflows resulting from operating, financing, and investing activities to users. b. the income statement provides useful information concerning the corporation's ability to generate sufficient cash flows from operations for use in payment of its operating obligations. c. past income statements can be useful indicators in predicting current and future cash dividend payments as well as future stock prices. d. the income statement helps shareholders evaluate management's operating effectiveness.