True / False Questions
78.Under the indirect method, depreciation expense would be subtracted from net income when determining the amount of cash flow from operating activities.
True False
79.Under the indirect method, losses would be added to net income when determining the amount of cash flow from operating activities.
True False
80.Under the indirect method, the amount of cash flow from financing activities would be the same as if the direct method had been used.
True False
81.When using the indirect method, the amount of net cash flow from operations will be higher than it would be if the direct method were used.
True False
82.When using the indirect method, the amount of net cash flow from operating activities will be the same as it would be if the direct method were used.
True False
83.Cash payments for interest expense on a bond payable would be classified as a financing activity.
True False
84.Cash receipts from the sale of investments would be classified as a financing activity.
True False
85.There are two methods- direct and indirect-for preparing and presenting the statement of cash flows.
True False
86.Cash from the sale of treasury stock would be classified as an investing cash flow.
True False
87.The cash proceeds from the sale of a building will be the book value plus any loss or minus any gain.
True False