True / False

____1 The Statement of Cash Flows is an optional disclosure for a set of financial statements.

____2 The first step in preparing the Statement of Cash Flows is to determine the change in the long-term assets..

____3 A statement of cash flows prepared by the indirect method will disclose the cash flows from specific operating activities, such as cash received from customers.

____4 Convertible bonds provide for the conversion of the interest rate being paid into a higher or lower interest of the bond.

____5. The face value of a bond is the total amount of principal and interest to be paid to the bondholder over the life of the bond.

____6. A $50,000 bond that sold at 102 would involve a bond discount of $48,000.

____7. The net effect of issuing bonds at a discount is to increase the periodic interest expense over the life of the bonds through the amortization of the discount.