79) In preparing the cash flows from operating activities section of the stateme

Question

79) In preparing the cash flows from operating activities section of the statement of cash flows by the indirect method, the net decrease in inventories from the beginning to the end of the period is added to net income for the period.
a. true
b. false

80) In determining the cash flows from operating activities for the statement of cash flows by the indirect method, the depreciation expense for the period is added to the net income for the period.
a. true
b. false

81) In preparing the cash flows from operating activities section of the statement of cash flows by the indirect method, the amortization of bond discount for the period is deducted from the net income for the period.
a. true
b. false


82) If the proceeds from the sale of bond investments exceeds the carrying amount of the bonds, a gain is realized.
a. true
b. false


84) The declaration and issuance of a stock dividend would be reported on the statement of cash flows.
a. true
b. false

Explanation / Answer

79) In preparing the cash flows from operating activities section of the statement of cash flows by the indirect method, the net decrease in inventories from the beginning to the end of the period is added to net income for the period.
a. true


80) In determining the cash flows from operating activities for the statement of cash flows by the indirect method, the depreciation expense for the period is added to the net income for the period.
a. true


81) In preparing the cash flows from operating activities section of the statement of cash flows by the indirect method, the amortization of bond discount for the period is deducted from the net income for the period.

b. false


82) If the proceeds from the sale of bond investments exceeds the carrying amount of the bonds, a gain is realized.
a. true



84) The declaration and issuance of a stock dividend would be reported on the statement of cash flows.
a. true

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