Answer the following statements true (T) or false (F)
1. Issuing preferred stock to stockholders in exchange for cash is shown under the financing activities section of the statement of cash flows.
2. Buying property, plant, and equipment for cash is considered a cash outflow for the financing activities section of the statement of cash flows.
3. Financing activities on the statement of cash flows affect the long-term liability and equity accounts.
4. The financing section of the statement of cash flows involves transactions relating to the equity accounts and the long-term liability accounts.
1. TRUE
2. FALSE
3. TRUE
4. TRUE
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