. You can find the interest rate that was used in computing a future value if you know the: (b) Future value and the number of periods. (d) Principal amount and the future value. rincipal amount, the number of periods, and the future value. umber of periods and the principal amount. 5. The future value of an ordinary annuity: (a) (b) (e) Includes interest on the last payment. Does not include interest on the last payment. Is the future sum of the principal plus compound interest on all of the payments. (d) Does not include interest on the first payment 6. Which of the following would be classified as a cash flow from operating activities? (a) Rent payments. (b) Dividend payments. (c) Payments for purchase of a building. (d) Payment of principal on a bank loan. 7. The main purpose of the statement of cash flows is to: (a) (b) (c) (d) Determine the change in cash during the period. Explain why the balance sheet accounts changed during the year. Disclose the quality of earnings. List the cash inflows and outflows by meaningful cash flow category. 8. Which of the following is not a long term investment? (a) (b) (c) (d) Cash surrender value of life insurance. Franchise. Land held for speculation. A sinking fund. 9. In preparing a statement of cash flows, which of the following transactions would be considered an investing activity? (a) Sale of equipment at book value. (b) Sale of merchandise on credit. (c) Declaration of a cash dividend. (d) Issuance of bonds payable at a discount