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Question 10 Which of the following statements is true regarding the operating activities section of the statemen of cash flows? When using the indirect method, the adjustment for depreciation expense equals the sum of the detits to the Accumulated Depreciation account. When using the direct method, a decrease in the Prepaid Auto Insurance Expense account hadded to selling and administrative expenses to compute cash paid for selling and administrative expenses When using the direct method, an increase in the Accounts Receivable account is added to sales teveut to compute cash collected from customers. When using the indirect method, a loss on the sale of old property, plant, and equipment is added to ret income When using the indirect method, an increase in the Property. Plant and Equipment account is subtracted from net income. 5pts Question 12 Which of the following statements about the use of differential analysis in decision making is true? Por unit variable costs are not always differential costs. Future costs that do not differ between the alternatives may or may not be relevant in a decision A fixed production cost incurred before the split-off point in a joint process is relevant in a sellas-s or proces further decision of a special-order decision requires the use of capacity that is not idle, opportunity costs are zero. A fixed cost can never be an avoidable cost Aforever be avoid 5 pts Question 13 Arrow Corporation is a manufacturing company that produces a wide range of household appliances In Arrow's statement of cash flows, which of the following items is included in the calculation of net cash provided by (used in) operating activities? Proceeds from issuing bonds which Arrow oves to fund construction of a new factory. Receipt of a principal payment on a loan made to a major supplier of component parts. Proceeds from the sale of old machinery that Arrow used in its manufacturing operations Payment of interest expense to a bank on a loan with a 5-year term used to purchase machinery None of the above items is included in net cash provided by (used in operating activities