Decide which of the following statements are true. 1. Payments made on interest-only debt (bonds, for example) appear as cash outflows in the Operating Activities section of the Cash Flow Statement. II. An increase in prepaid expenses of $8,000 for the year increases cash flow from operations. III. Both the direct approach and indirect approach will arrive at the same amount for cash flow from operations. Select one: a. One is true, b. Two are true. c. All are true d. All are false