2. Cash outflows from operating activities come froma. Payment for raw materials

2. Cash outflows from operating activities come froma. Payment for raw materials.b. Collection of sales revenues.c. Acquisition of operating equipment.d. Retirement of bonds.e. None of the above.3. Raising cash by issuing capital stock is an example ofa. An operating activity.b. An investing activity.c. A financing activity.d. A noncash transaction.e. None of the above.4. Sources of cash includea. Profitable operations.b. The issuance of long-term debt.c. The sale of long-term assets.d. The issuance of capital stock.e. All of the above.5. Uses of cash includea. Cash dividends.b. The purchase of long-term assets.c. The sale of old equipment.d. Only a and b.e. None of the above.6. The difference between the beginning and ending cash balances shown on the balance sheeta. Is added to net income to obtain total cash inflows.b. Is deducted from net income to obtain net cash inflows.c. Serves as a control figure for the statement of cash flows.d. Is the source of all investing and financing activities.e. Is both c and d.7. Which of the following adjustments helps to convert accrual income to operating cash flows?a. Add to net income an increase in inventoriesb. Deduct from net income a decrease in inventoriesc. Add to net income a decrease in accounts payabled. Deduct from net income an increase in accounts payablee. None of the above8. Which of the following adjustments to net income is needed to obtain cash flows?a. Elimination of gains on sale of equipmentb. Add to net income all noncash expenses (e.g. depreciation and amortization)c. Add to net income any increases in current liabilitiesd. Deduct from net income any increases in inventoriese. All of the above