Unformatted text preview: 2. Repayment of long-term debt 3. Purchase of machinery 4. Payment of interest 4. In a statement of cash flows under the U.S. standards, interest payments to lenders and other creditors should be classified as cash outflows for 1. borrowing activities. 2. operating activities. 3. investing activities. 4. financing activities. 5. Which of the following would be an example of an investing activity ? 1. Issuance of long-term bonds 2. Issuance of common stock 3. Payment of cash dividends 4. Sale of plant assets 6. In a statement of cash flows (indirect method), an increase in inventories should be presented as 1. an inflow of cash. 2. an inflow and outflow of cash. 3. an addition to net income. 4. a deduction from net income....
View Full Document
- Fall '09
- Cash Flow Statement, large cash dividends