58. Which of the following is an investing activity? 
A. Purchase of equipment.
B. Payment of interest.
C. Issuing common stock.
D. Issuing long-term debt.

59. In a statement of cash flows, the term cash includes: 
A. Only money on deposit in bank accounts.
B. Only bank accounts and cash on hand.
C. Bank accounts, cash on hand, and cash equivalents.
D. Bank accounts, cash on hand, cash equivalents, and marketable securities classified as current assets.

60. Which of the following is a financing activity? 
A. Payment of interest.
B. Payment of dividends.
C. Making sales on account.
D. Paying off accounts payable.

61. Which of the following indicates cash receipts? 
A. Debit entries in the Notes Receivable account.
B. Credit entries in the Marketable Securities account.
C. Debit entries in the Notes Payable account.
D. Credit entries in the Accumulated Depreciation account.

62. Which of the following indicates a cash receipt? 
A. A decrease in accrued expenses, such as wages payable.
B. A decrease in accounts receivable.
C. An increase in inventory.
D. A decrease in accounts payable.

63. Which method will yield higher cash flows from operating activities? 
A. The indirect method.
B. The direct method.
C. Both direct and indirect methods will yield the same amount.
D. Depends upon the situation.

64. Which of the following would not be presented in the cash from operating activities section of the statement of cash flows when the indirect method is used? 
A. Gain on the sale of investments.
B. Depreciation expense.
C. Neither a gain on the sale of investments nor depreciation expense would be shown.
D. Both a gain on the sale of investments and depreciation expense would be shown.

65. Which of the following sets of data is sufficient to compute the amount of cash paid for merchandise? 
A. Cost of goods sold, increase or decrease in inventory, increase or decrease in accounts payable.
B. Increase or decrease in cash, increase or decrease in inventory, increase or decrease in accounts payable.
C. Cost of goods sold, increase or decrease in accounts payable.
D. Cost of goods sold.

66. Which of the following does not create a difference between net income and the net cash flow from operations? 
A. Non-operating gains and losses.
B. Depreciation expense.
C. Timing differences between credit sales and collections from customers.
D. Payment of a cash dividend.

67. Which method will yield the higher cash flows from financing activities? 
A. The indirect method.
B. The direct method.
C. Both direct and indirect methods will yield the same amount.
D. Depends upon the situation.