Page 1 The straight-line method of amortization is the recommended method 1 2 3 A) True B) False 4 Question 2 (0.75 points) Which of the following statements is true? OA) The direct method of calculating cash flows from operations starts with net income and adjusts for noncash revenues and expenses and changes in current assets and current liabilities B) The indirect method of calculating cash flows from operations adjusts each item in the income statement to a cash basis C) None of the choices are correct D) The direct method is easier to use than the indirect method Question 3 (0.75 points) The statement of cash flows is one of the major financial statements A) True B) False