Knowledge Check 01 Indicate whether each of the following transactions is classified as a financing, investing, or operating activity: Investing activity Purchase equipment Pay salaries to employees Pay dividends to shareholders Sell goods to customers Receive loan from the bank by signing a note The statement of cash flows: Multiple Choice Presents the financial position of a company at a point in time. Indicates if a company is profitable. Shows the net change in cash over a period of time. Reports the difference between revenues and expenses