10) A declaration of a cash dividend is a financing activity whereas a declaration of stock dividend is ignored on a statement of cash flows. (answer True or False)

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

12) When using the indirect method to prepare the operating section of a statement of cash flows, a gain on the sale of equipment and a loss on impairment of an asset would both be added back as an adjustment to net income. (answer True or False)

13) A statement of cash flows typically would not disclose the effects of an exchange of a truck for machinery. (answer True or False)