1. The primary purpose of the statement of cash flows is to provide information about a company's cash receipts and cash payments during an accounting period in order to explain the change in the cash balance A) True B) False MULTIPLE CHOICE 3 POINTS EACH 2. In a Statement of Cash Flows prepared under the indirect method, which of the following would be added to net income to arrive at net cash provided (used) by operating activities? A) Decrease in Inventory Increase in Prepaid Expenses C) Decrease in Accounts Payable Increase in Accounts Receivable 3. Significant Noncash transactions A) appear as a separate schedule on the statement of cash flows. B) appear in either the investing or financing activities section, but not both. C) are excluded from the statement of cash flows. D) appear in both the investing and financing activities sections. 4. The order of presentation of activities on the statement of cash flows is operating, investing, financing operating, financing, investing C) financing, operating, investing financing, investing, operating Financing activities involve A) lending money B) acquiring investments C) issuing debt acquiring long-lived assets