True or False?

8. No lease liabilities should be reported on the balance sheet if the lease is classified as an operating lease.

9. The lessor should ignore the guaranteed residual value in its calculation of lease receivable.

10. If residual value is unguaranteed, the lessee ignores the residual value in the computation of lease liability.

11. Companies report the cash flows from purchases and sales of trading securities as cash flows from operating activities.

12. A company should add back bond premium amortization to net income to arrive at net cash flow from operating activities.

13. Dividends received from other companies stocks should be reported as cash flow from investing activities.

14. Interest paid to creditors should be reported as cash flows from financing activities.

15. Cash paid to the lessor in the case of operating lease should be reported as cash flows from financing activities.