98.Cash flows from investing activities are related to the acquisition and disposition of assets, other than inventory and supplies.
True False
99.Noncash investing and financing activities are not reported on the statement of cash flows.
True False
100.The indirect method reverses the differences between the accrual-based income statement and "cash flows from operating activities."
True False
101.Under the direct method, there is no adjustment for non-cash items - this includes gains and losses.
True False
102.Under the indirect method, the increase or decrease in long term assets is handled in the investing section of a cash flow statement.
True False
103.Under the indirect method, the increase or decrease in current liabilities is handled in the operating section of a cash flow statement.
True False
104.Under the indirect method, the increase or decrease in stockholder's equity is handled in the investing section of a cash flow statement.
True False
105.A net decrease in the equipment account indicates that equipment must have been sold at a loss during the year.
True False
106.The amount of revenue a company recognizes on the income statement normally differs from the amount of cash collected from customers.
True False
107.The indirect method for preparing the statement of cash flows begins with the amount of sales revenue reported on the income statement.
True False