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8. Feld to-maturity securities are equity securities a company intends to hold until dividends have been paid 8. Thue 9. To be classified as a cash equivalent, the only criterion an item must meet is that it must be readily convertible to a liquid asset. 9. False 10. A cash equivalent must be readily convertible to a known amount of cash, and must be suficiently close to its maturity so its market value is unsfiected by interest rate changes 10. True 11. Cash receipts and cash payments are classified as operting, investing, or finmecing activities on the statement of cach flows. 11. False 12. Financing activities include (C) the purchase and sale of long-term assets, (b) the purchase and sale of short-term investments, and (c) lending and collecting on loans. 12. False 13. Investing activities include (C) the purchase and sale of long-term assets, (b) the purchase and sale of short-term investments, and (C) loaning money. 13. True 14. The payment of cash dividends to shareholders is classified as a financing activity. 14. 15. Cash flows are essentially the same as net income because they are both measured using secrual secounting principles. 15. 16. Investing activities include: (C) the purchase and salo of long -term assets, (C) loaning money in return for notes receivable, and (c) the purchnse and sale of chort-term investments. 16. 17. External users of eccounting information manage and operate the company. 17. 18. External users of accounting information make the strntegie and opernting decisions of a company. 18. 19. One purpose of financial statement analysis for internal usens is to provide information to improve eficiency and effectiveness. 19. 20. Financial annlysis does not include assessing future performance end risk because financial itatements ars based on past performance. 20. 21. General-purpose finmeial statements include the (1) income statement; (2) balance chect, (3) ctatement of stockholders' equity (or statement of retained earnings), ( ) statement of cesh flows

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