Question 38 (4 points) $1,000 of office supplies are purchased on account would be: Reported as a cash outflow in the operating activities section. Reported as a cash outflow in the financing activities section. Reported as a cash outflow in the investing activities section. None of the above. Question 34 (4 points) Which statement is false? Regarding the Statement of Cash Flows, the only difference between the direct method and indirect method is how the operating activities section is prepared. Common Stock and Preferred Stock are equity accounts. Cash paid for expenses and cash rekived for revenues are reported as an operating activity. Cash received from a loan is reported as a financing activity. None of the above as all statements are true. 1 The Matisse Co. reported the following information related to the balance sheet. Current Year on Last Year on December December 31st 31st Total Assets $880,000 $800,000 Total Liabilities $300,000 $200,000 Total Stockholders $580,000 $600,000 Equity Based on a horizontal analysis of assets, comparing the current year to the prior year, assets would show An increase of 10% 51 An increase of 9% A decrease of 10% A decrease of 8% None of the above