14.T F FASB prefers companies to use the indirect method of determining cash flows from operations. 15. T F A majority of companies calculate their cash flows from operations using the indirect method. 1 16. T F Timing differences occur between recording a transaction and the collection or disbursement of cash because of the rules of accrual accounting. 17. T F If sales for the year totaled $3,000 and accounts receivable increased by $200 during the year, then cash collected from customers would be $2,800. 18. T F When rent expense for the year totals $90,000 and rent payable increases by $5,000 during the year, cash paid for rent was $95,000. 19.T F The indirect method of determining cash flows from operating activities begins with net income for the period. 20, T F Depreciation is subtracted from net income to arrive at cash flows from operations using the indirect method