Choose the most appropriate answer to the following questions 1. The statement of cash flows reports A. Assets, liabilities, and equity B. Revenues, gains, expenses, and losses. Cash inflows and cash outflows for an accounting period. D. Equity, net income, and dividends. E. Changes in equity 2. The statement of cash flows reports: A. Cash flows from operating activities. B. Cash flows from financing activities. C. Cash flows from investing activities. D. Significant noncash financing and investing activities. E. All of these. 3. A cash equivalent is an investment that: A. Is readily convertible to a known amount of cash. B. Is sufficiently close to its maturity date so its market value is unaffected by interest rate changes. C. Generally is within 3 months of its maturity date. D. Is highly liquid E. All of these. ities that involve the production or purchase of merchandise and the sale of goods and services to customers, including expenditures related to administering the business, are classified as: A. Financing activities. B. Investing activities. C. Operating activities. D. Direct activities. E. Indirect activities. 5. The appropriate section in the statement of cash flows for reporting the purchase of equipment for cash is: A. Operating activities. B. Financing activities. C. Investing activities. D. Schedule of noncash investing or financing activity. E. None of these. This is not reported on the statement of cash flows