11. The statement of cash Bows belps address questions suchas B. What is the source of cash foe new plant assets? C. How moch cash is generated from or used in D. Why is cash flow from operations different from income? E. All of these 12. The indirect method for the preparation of the operating activities section of the statement of cash flows A. Separately lists each major item of operating cash receipts. B. Separately lists each major item of operating cash payments. C. Reports net income and then adjusts it for items necessary to determine net cash provided or E. Must not be used in all circumstances. 13. The first line iten in the operating activities section of a spreadsheet for a statement of cash flows prepared using the indirect method is A. Cash. B. Cash reocived from customers E. Adjustments to net income. 14. When preparing a statement of cash flows on the indirect method, which of the following is correct? A. Proceeds from the sale of equipment should be added to net income in the operating activities section. B. A loss on the sale of land should be added to net income in the operating activities section. C. The declaration of a cash dividend should be a use of cash in the financing section. D. The issuance of a stock dividend should be a use of cash in the financing activities section. E. The purchase of land and a building g by issuing a long-term note payable should be a source of cash in the financing activities section 15. A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash. The amount that should be reported as a source of cash under ca sh flows from A. $50,000. B. $5,000 C. $45,000 D. Zero. This is an operating activity. E. Zero. This is a financing activity. A. Historical cost principle. B. Materiality principle. C. Full disclosure principle D. Going concern principle E. Business entity principle 10. The appropriate section in the statement of cash flows for reporting the purchase of land in exchange for common stock is