21) Which statement is False re: Cash Flow Statements: a) Measures the ability to generate future cash flows. b) Measures the abillity to pay dividends and meet obligations. c) Identifies the difference between net income and net cash provided from operating activities. d) A cash flow statement identifies cash from operations and financing for corporate use. A) A is false B) B is false C) C ls false D) D is false 22) Which statement is False as it regards Classification of Cash Flows a) Operating activities include the cash effects of net income. b) Investing activities includes all transactions that involve the purchase of plant property and long term c) Financing activities are those that obtain cash by issuing debt or equity and used to repurchase stocks d) Cash Flow Statements are consolidated into the Equity Statement. investments. and pay dividends. A) A is false B) B is false C) C is false D) D is false 23) Which statement is False as it regards Cash Flow Methods a) The two methods to value a Cash Flow Statement is Indirect and Direct b) Indirect Method adjust net income for items that do not affect cash to determine net cash provided c) d) by net income Both methods arrive at the same cash flow. Indirect Method is the least common. A) A is False B) B is False C) C is False D) D is False 24) Which statement is False as it regards Operating Activities for Cash Flow Indirect Method adds back non cash items like depreciation and Loss on Disposal of Plant Assets. Non cash current assets accounts are deducted from net income increase and add to net income, decreases re: Accounts Receivable Prepaid Expenses and Inventory. Changes in Current Liabilities are not adjusted for Cash Flow. Operating Cash Flow Activities are the net income plus or minus adjustments in non cash or loss on assets. A) A is False B) B is False c) C is False D) D is False a) b) c) d)