1. When preparing the operating activities section of the statement of cash flows using the indirect method, non-operating losses are subtracted from net income. True or false?

2. When preparing the operating activities section of the statement of cash flows using the indirect method, decreases in current operating assets are subtracted from net income. True or false?

3. When preparing the operating activities section of the statement of cash flows using the indirect method, non-operating gains are subtracted from net income. True or false?

4. When preparing the operating activities section of the statement of cash flows using the indirect method, non-operating losses are added to net income.

True or false?

5. The cash flows from operating activities section of an indirect method of cash flows begins with net income or loss.

True or false?

6. When preparing the operating activities section of the statement of cash flows using the indirect method, decreases in current operating liabilities are added to net income.

True or false?

7. When preparing the operating activities section of the statement of cash flows using the indirect method, depreciation is subtracted from net income

True or false?

8. When preparing the operating activities section of the statement of cash flows using the indirect method, non-operating gains are added to net income.

True or false?

9. When preparing the operating activities section of the statement of cash flows using the indirect method, a decrease in accounts receivable is subtracted from net income.

True or false?

10. When preparing the operating activities section of the statement of cash flows using the indirect method, decreases in current operating assets are added to net income.

True or false?

11. Equipment costing $100,000 with accumulated depreciation of $40,000 is sold at a loss of $10,000. This implies that $40,000 cash was received from the sale.

True or false?

12. Equipment costing $400,000 with accumulated depreciation of $260,000 is sold at a gain of $10,000. This implies that $130,000 cash was received from the sale.

True or false?

13. Equipment costing $200,000 with accumulated depreciation of $160,000 is sold at a loss of $10,000. This implies that $30,000 cash was received from the sale.

True or false?

14. Equipment costing $400,000 with accumulated depreciation of $260,000 is sold at a gain of $10,000. This implies that $150,000 cash was received from the sale.

True or false?