1. Investments in equity securities can be distinguished as either short-term or long- term investments. Investments in equity securities that are short-term can be further distinguished as either trading or available-for-sale securities. (True/False)
2. Investments in debt securities can be classified as held to maturity investments. Held to maturity debt securities should be valued at the end of the period at amortized cost which is synonymous with carrying value and book value. (True/False)
3. When using the indirect method to prepare the operating section of a statement of cash flows, a gain on the sale of land and an increase in notes receivable would both be added back as an adjustment to net income. (True/False)

4. A statement of cash flows would not disclose the purchase of machinery in exchange for a note payable. (True/False)