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7. Which is true, regarding the indirect statement of cash flows and tlhe flows? cash A) The direct statement shows the cash flows provided by / used in operations, but the indirect sections using the direct method. e operating section as a reconciliation from net income to net as a statement shows all three B) The FA SB recommends that companies prepare a direct statement of cash flows, but almost all companies prepare an indirect statement of cash flows C) Th e indirect method provides a change close to the total change in cash, but not necessarily the exact amount. The direct method provides the exact difference in cash D) The direct method includes the cash flows from financing activities, but the indirect method does not. Answer: 8. The ABC corporation issued bonds payable of $3.400,000. The bonds were issued at a price of $3,010,000 Which is true? A) Cash should be credited for $3,010,000. B) Discount on Bonds Payable should be dehited for $390,000 C) Discount on Bonds Payable should be credited for $390,000 D) Bonds Payable should be debited for $3,400,000. Answer: 9. Which of the following is uot a cash flow from financing activities? A) Receipt of cash from investors buying new shares of stock. B) Cash dividends declared, but not paid at the end of a period C) Payment of cash on a long-term note payable. D) Payment of cash on a short-term note payable