13. To arrive at net cash provided by operating activities, it is necessary to report revenues and expenses on a cash basis. This is done by A) re-recording all income statement transactions that directly affect cash in a separate cash flow journal B) estimating the percentage of income statement transactions that were reported statement transactions originally on a cash basis and projecting this amount to the entire array of income C) eliminating the effects of income statement transactions that did not result in a corresponding increase or decrease in cash eliminating all transactions that have no current or future effect on D) cash, such as depreciation, from the net income computation an increase in ending adjustment to reported net earnings 14. When preparing a statement of cash flows (indirect method), inventory over beginning inventory will result in an because cash was increased while cost of goods sold was decreased. A) cost of goods sold on an accrual basis is 1lower than on a cash basis ) acquisition of inventory is an investment activity C) D) inventory purchased during the period was less than inventory sold resulting in a net cash increase 15. Which of the following is false concerning the statement of cash flows? When pension expense exceeds cash funding, the difference is deducted from investing activities on the statement of cash flows. B) A) The FASB requires companies to classify all income taxes paid as operating cash outflows C) Under GAAP, the purchase of land by issuing stock will be shown as a cash outflow under investing activities and a cash inflow under financing activities. All of these are true concerning the statement of cash flows D)