True or False
1. ____ Both the indirect and direct methods of calculating cash flows from operations begin with net income.
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2. ____ Purchasing treasury stock is an example of a financing activity.
3. ____ Presenting the statement of cash flows is optional according to U.S. GAAP.
4. ____ Some analysts believe the cash flow from operating activities is a better measure of a company than its net income.
5. ____ A loss on the sale of equipment would be shown in the operating section because it is shown on the income statement.
6. ____ Investing and financing activities not involving cash still need to be disclosed.
7. ____ Accrual accounting causes differences to exist between the income statement and operating section of the statement of cash flows.
8. ____ Payment of interest and dividends are both operating activities.
9. ____ Most companies use the direct method of calculating cash flows from operating activities.
10. ____ Depreciation expense is never a cash expense.