1) In preparing the cash flows from operating activities section of the statement of cash flows by the indirect method, the net decrease in inventories from the beginning to the end of the period is added to net income for the period.
a. true
b. false
2) In determining the cash flows from operating activities for the statement of cash flows by the indirect method, the depreciation expense for the period is added to the net income for the period.
a. true
b. false
3) In preparing the cash flows from operating activities section of the statement of cash flows by the indirect method, the amortization of bond discount for the period is deducted from the net income for the period.
a. true
b. false
4) If the proceeds from the sale of bond investments exceeds the carrying amount of the bonds, a gain is realized.
a. true
b. false
5) The declaration and issuance of a stock dividend would be reported on the statement of cash flows.
a. true
b. false