41. When preparing the operating section of the statement of cash flows using the indirect method, an increase in income taxes payable is added back to net income.
42. Financing activities include receiving cash dividends from investments in other companies' stocks.
43. Under IFRS, interest revenue may be classified as an operating or investing activity, assuming that this classification is applied consistently across all periods.
44. Financing activities include receiving cash from issuing debt and receiving cash dividends from investments in other companies' stocks.
45. The payment of cash dividends never changes the balance of retained earnings.
46. Equipment costing $100,000 with accumulated depreciation of $40,000 is sold at a loss of $10,000. This implies that $90,000 cash was received from the sale.
47. A spreadsheet can help organize the information needed to prepare a statement of cash flows.
48. On a spreadsheet used to prepare the operating section of the statement of cash flows, depreciation expense does not require an entry in the Analysis of Changes column as it is a noncash item.
49. When using a spreadsheet to prepare the statement of cash flows, a decrease in accounts payable is entered in the Analysis of Changes column with a debit in the statement of cash flows section and a credit in the balance sheet section.
50. Both the direct and indirect methods yield the identical net cash flow amount provided or used by operating activities.