When preparing the operating activities section of the

Reference no: EM13583142

True or False 1- 5

1.) If a company is to succeed over the long-term, a positive cash flow from operating activities is necessary.

2.) Liquidity measures the ability of a company to meet its current financial obligations.

3.) When preparing the operating activities section of the statement of cash flows using the indirect method, an increase in income taxes payable is added to net income.

4.) The par value of stock indicates what the stock is worth.

5.) Issuing stock to obtain financing is called equity financing.

Reference no: EM13583142

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