5. An example of a cash inflow from investing activities is

a. a purchase of plant & equipment for cash
b. a sale of investment in equity securities for cash
c. bonds issued for cash
d. interest revenue received on loans

6. The accuracy of the statement of cash flows can be verified by computing the change in the balance of the

a. asset & liability accounts
b. cash & cash equivilent accounts
c. equity account
d. revenue account

7. The method of reporting cash flows from operating activities under which net income is adjusted for transactions impacting both net income & cash flows, but in different ways, is called the ___ method.

a. adjusted
b. combination
c. direct
d. indirect

8. The method of reporting cash flows from operating activities under which revenues & expenses reported on the income statement are adjusted to reflect the amount of cash received or paid for each item is called the ___ method.

a. adjusted
b. combination
c. direct
d. indirect