1. True or False: A stock split has no effect on the total of any account in stockholders' equity unless it is treated similar to a large stock dividend.

2. True or False - Companies need to subtract amortization expense from net income as a step in arriving at net cash flows from operating activities under the indirect method.

3. True or False - When the indirect method is used to prepare the operating activities section of the statement of cash flows, the adjustments to net income for income statement items relate only to the removal of noncash revenues and noncash expenses.

4. Under the indirect method, adding back the amount of depreciation eliminates the deduction of this noncash expense in net income.

5. To calculate a year-to-year percentage change in any financial statement line item such as sales, you determine the difference between the current-year amount and the prior-year amount and divide that difference by

a) the prior year's amount

b) total assets

c) net income

d) the current year's amount