Question

Cash flows resulting from a company's normal earnings processare reported on the statement of cash flows in the:

A) financing activities section

B) investing activities section

C) operating activities section

D) noncash investing and financing activities section

AND

Which of the following activities is not correctly associatedwith its cash flow classification?

A) Operating – Sale of merchandise for cash

B) Financing - Sale of company’s Preferred Stock

C) Investing – Purchase of Treasury Stock

D) Operating – Purchase of advertising for the year