1.Bad debt expense and share based compensation expense must be added to net income to determine cash flows from operations under the indirect method.

a.True

b.False

2.Increases in current liabilities cause operating cash flows to be lower than accrualmbasis net income.

a.True

b.False

3.Under the indirect method, adjustments to net income are based on accounting equation relationships.

a.True

b.False

4.The "bottom line" of the cash flow statement is Net Increase (Decrease) in Cash and Cash Equivalents.

a.True

b.False