Q63. When cash is paid to suppliers on account, which section of the Statement of Cash Flows is affected? a. Cash Flow from Operating Activities. b. Cash Flow from Investing Activities. c. Cash Flow from Financing Activities d. There is no effect on the Statement of Cash Flows. Q73. To determine cash payments for operating expenses for the cash flow statement using the direct method, depreciation expense is added to net income. a. true b. false

Q82. The indirect method of preparing the statement of cash flows reconciles net income with net cash flows from operating activities. a. true b. false

Q94. The difference between sales and cost of merchandise sold for a merchandising business is a. sales. b. net sales. c. gross sales. d. gross profit.