true false questions 1 usually there is a difference between the net income reported 4303775

True / False Questions
 

1.Usually, there is a difference between the net income reported on the income statement and the net cash from operating activities shown on the statement of cash flows. 
 
 

 

 

 

2.The statement of cash flows provides information about cash flows from operating activities, investing activities, and financing activities. 
 
 

 

 

 

3.By analyzing past cash flows, financial statement users can identify the primary sources and uses of cash. 
 
 

 

 

 

4.An increase or decrease in accounts payable during a fiscal period has no effect on the net cash provided by operating activities. 
 
 

 

 

 

5.Operating activities are routine business transactions that include providing services, paying wages, borrowing funds, selling stock, and paying dividends. 
 
 

 

 

 

6.When a firm issues a long-term note payable, the amount that it receives for the note is considered a cash inflow from operating activities. 
 
 

 

 

 

7.A sale of used equipment for cash produces a cash inflow from investing activities. 
 
 

 

 

 

8.The payment of cash dividends to stockholders would be classified as a cash outflow resulting from a financing activity. 
 
 

 

 

 

9.The cash received from issuing common stock would not be reported on the statement of cash flows. 
 
 

 

 

 

10.If a firm's accounts receivable increased during the fiscal period, it is necessary to subtract the amount of the increase from the net income when computing the net cash provided by operating activities.