Paying wages and salaries to employees is classified as a cash outflow in the operating activities section of the statement of cash flows. True False A direct cost is a cost that cannot be easily traced to the particular cost object under consideration. True False Under the indirect method of determining the net cash provided by operating activities on the statement of cash flows, a loss on the sale of an asset would be added to net income. True False Vertical analysis of financial statements is accomplished by preparing common-size statements. True False When computing the net cash provided by operating activities under the indirect method on the statement of cash flows, an increase in prepaid expenses would be added to net income. True False As the accounts receivable turnover ratio decreases, the average collection period increases. True False