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1. The statement of cash flows encompasses a firm's cash equivalents such as money market funds, in addition to cash. Select one: True False 2.

1. The statement of cash flows encompasses a firm's cash equivalents such as money market funds, in addition to cash. Select one: True False

2. The operating cash flow to capital expenditures ratio in excess of 1.0 means that the firms' current operating activities are providing cash in excess of the amount needed to provide the desired level of plant capacity. Select one: True False

3. The operating activities section of the statement of cash flows shows a reconciliation of net income to the net cash provided by operating activities amount under the direct method. Select one: True False

4. Information about noncash investing and financing activities must be disclosed in a schedule that is separate from the statement of cash flows. Select one: True False

5. Depreciation expense is deducted from net income in determining cash flows provided by operating activities under the indirect method. Select one: True False

6. Cash received from the sale of one of a company's warehouses is classified as a cash flow from investing activities in a statement of cash flows. Select one: True False

7. Cash received from customers for services rendered is classified as a cash flow from operating activities in a statement of cash flows. Select one: True False

8. Cash paid for interest on a loan is classified as a cash flow from financing activities in a statement of cash flows. Select one: True False

9. Cash paid as dividends to stockholders is classified as a cash flow from investing activities in a statement of cash flows. Select one: True False

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