All of the following statements related to preparation of the statement of cash flows are true except A. Purchase of an intangible asset is classified as an investing activity.
B. Repaying the principal of notes payable is classified as a financing activity.
C. Cash dividends paid to shareholders are classified as a financing activity
D. A company may report cash flows from operating activities using either the direct or indirect method.
E. Interest expense may be reported under operating or financing based on which one results in better cash flows.

General widgets, inc., manufactures high-quality widgets. the widget industry is mature and few innovations occur. the widgets have to be built exactly according to particular specifications provided by customers. this requires the use of controlled processes and precise measurements. the company also needs to maintain high efficiency in its production process in order to meet the market demand. for this company, stability is more important than flexibility. which of the organizational cultures is best suited for general widgets? a.) clan culture b.) modern culture c.) hierarchy culture d.) market culture