1) The payment of a cash dividend and the issuance of a stock dividend are both considered financing activities. (answer True or False)

2) When preparing a statement of cash flows (indirect method), an increase in taxes payable would result in an addition to net income. (answer True or False)

3) When using the indirect method to prepare the operating section of a statement of cash flows, a gain on the sale of a building would be subtracted from net income in the operating activity section. The cash proceeds from the sale of the building will cause an increase to cash in the investing activities section of a statement of cash flows. (answer True or False)