9. The accounting principle which requires that noncash financing and investing activities are reported on the statement of cash flows is the principle of: A. Full disclosure. B. Materiality. C. Historical cost. D. Going concern. E. Business entity. 3

10. 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 used by operating activities. D. Separately lists each major item of operating cash receipts and payments. E. All of these answers are correct.

11. Financial statement analysis: A. Is the application of analytical tools to general-purpose financial statements and related data for making business decisions and helps users to make better decisions. B. Lessens the need for expert judgment. C. Helps users to make better decisions. D. Is the application of analytical tools to general-purpose financial statements and related data for making business decisions. E. All of these answers are correct.

12. To calculate trend percents: A. Select a base period and assign each item for the base period statement a weight of 100%. B. Express financial numbers from other periods as a percent of the related base period number. C. Subtract the analysis period number from the base period number. D. Select a base period and assign each item for the base period statement a weight of 100% and express financial numbers from other periods as a percent of the related base period number. E. All of these answers are correct.