1)

Under the indirect method of determining the net cash provided by operating activities on the statement of cash flows, an increase in property, plant, and equipment is subtracted from net income. T/F

2)

When a company pays a supplier for inventory it has purchased, the cash outflow is recorded in the investing activities section of the statement of cash flows. T/F

3)

Investing activities on the statement of cash flows generate cash inflows and outflows related to borrowing from and repaying principal to creditors and completing transactions with the company's owners such as selling or repurchasing shares of common stocks and paying dividends. T/F

4)

Cash received from the sale of equipment the company had used in its own operations would be considered an operating activity on a statement of cash flows. T/F

5)

Buying property, plant, or equipment would be reported as a cash outflow on the investing activities section of the statement of cash flows. T/F

6)

The net cash provided by operating activities on the statement of cash flows does not include any dividends paid to the company's own shareholders. T/F

7)

When computing the net cash provided by operating activities under the indirect method on the statement of cash flows, an increase in prepaid expenses would be added to net income. T/F

8)

Under the indirect method of determining the net cash provided by operating activities on the statement of cash flows, a decrease in inventory would be added to net income. T/F

9)

When computing the net cash provided by operating activities under the indirect method on the statement of cash flows, a decrease in common stock would be subtracted from net income. T/F

10)

Under the indirect method of determining the net cash provided by operating activities on the statement of cash flows, an increase in accounts receivable would be subtracted from net income. T/F