(d) no relationship exists between the two rates

7-Cash dividends paid to stockholders are classified on the statement of cash flows as: (a) operating activities. (b) investing activities. (c) a combination of (a) and (b). (d).financing activities 8-Which of the following is incorrect about the statement of cash flows? (a) The direct method may be used to report cash provided by operations, (b) The statement shows the net cash provided (used) for three categories of activity, (c) The operating section is the last section of the statement. (d) The indirect method may be used to report net cash provided by operating activities, 9-Which is an example of a cash flow from an investing activity? (a) Receipt of cash from the issuance of bonds payable, (b) Payment of cash to repurchase outstanding capital stock. (c) Receipt of cash from the sale of equipment. (d) Payment of cash to suppliers for inventory. 10-The time period for classifying a liability as current is one year or the operating cycle, whichever is: (a) longer. (b) shorter. (c) 'probable. (d) possible 11-Maggie Sharrer Company borrows $88,500 on September 1, 2015, from Sandwich State Bank by signing an $88,500, 12%, one-year note. What is the accrued interest at December 31, 2015? (a) $2,655. (b) $3,540. (c) $4,425. (d) $10,620. 12-Karson Inc. issues 10-year bonds with a maturity value of $200,000. If the bonds are issued at a premium, this indicates that: (a) the contractual interest rate exceeds the market interest rate. (b) the market interest rate exceeds the contractual interest rate. (c) the contractual interest rate and the market interest rate are the same