Reference no: EM132960749
Problem 1: When a statement of cash flows is prepared using the indirect method
a. Net income is the starting point in determining cash flows from operations
b. Dividend expense is not included
c. The increase in cash is different than when the direct method is used
d. The amount of cash collected from customers is calculated
Problem 2: Noncash investing and financing transactions
a. Appear as a separate schedule on the statement of cash flows
b. Appear in either the investing or financing activities section, but not both
c. Are excluded from the statement of cash flows
d. Appear in both the investing and financing activities section
Problem 3: Which of the following is not a financing activity on the Statement of Cash Flows?
a. When a company issues stock to shareholders.
b. When a company pays dividends
c. When a company borrows money.
d. When a company lends money
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