In relation to a company's statement of cash flows, which of the following is true? Operating activities for corporations include lending money and buying shares. Revenues are increases in economic resources that result from a business's operating activities. Investing activities involve issuing shares to raise money. The purchase of equipment is an example of a financing activity. Which statement is correct about the system used to account for inventories? The balance sheet under the perpetual system is different than that under the periodic system. The perpetual system is used to determine the amount of inventory and the periodic system is used to determine the cost of goods sold. Organizations must use the perpetual system to determine the amount of inventory and cost of goods sold. The perpetual and periodic systems are both acceptable methods to account for inventories. An expense account should only be recorded when cash is paid can only be debited. is a subdivision of the retained earnings account and decreases shareholders' equity. should never be closed in order to reflect the cumulative effect