Question
True or False: 1) Interest and dividends from investments held by a company are reported as cash inflows from investing activities on the statement of
True or False:
1) Interest and dividends from investments held by a company are reported as cash inflows from investing activities on the statement of cash flows.
2) Under the indirect method, changes in current assets are used in determining cash flows from operating activities and changes in current liabilities are used in determining cash flows from financing activities.
3) Using the indirect method, the increase in accumulated depreciation is added to net income in the operating section.
4) In general, the cash flow from operating activities is considered by many to be the most important component of the statement of cash flows.
5) Depreciation expense is not reported on the statement of cash flows when prepared using the direct method.
6) Common size financial statements are not useful in analyzing companies of different size.
7) Trend data can be measured in dollar amounts or percentages.
8) Benchmarks are required to evaluate a company's performance.
9) Vertical analysis is the comparison of a company's financial information over time.
10) Horizontal analysis is the comparison of a company's financial information to a base amount.
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