No 13. Which of the following is an example of managing earnings down? A) Changing estimated bad debts from 3 percent to 2.5 percent of sales. Revising the estimated life of equipment from 10 years to 8 years. C) Not writing off obsolete inventory. D) Reducing research and development expenditures Which type of account is always debited during the closing process? A) Dividends B) Expense C) Revenue D) Retained earnings 14. In preparing a statement of cash flows, cash flows from operating activities A) can be calculated by appropriately adding to or deducting from net income those items in the income statement that do not affect cash. are calculated as the difference between revenues and expenses. can be calculated by appropriately adding to or deducting from net income those items in the income statement that do affect cash. 15. B) C) D) are always equal to accrual accounting income