16. Operating activities include long-term borrowing and repaying cash from lenders, and cash investments or withdrawals by the owner True False The purchase of supplies appears on the statement of cash flows as an investing activity because it involves the purchase of assets. True False 1x The first step in the processing of a transaction is to analyze the transaction and source documents. True False 19. Preparation of a trial balance is the first step in the analyzing and recording process. True False 22. Source documents provide evidence of business transactions and are the basis for accounting entries. True False 21. Items such as sales tickets, bank statements, checks, and purchase orders are source documents. True False 22. An account is a record of increases and decreases in a specific asset, liability, equity, revenue, or expense item. True False 22. A customer's promise to pay is called an account payable to the seller True False 24. Withdrawals by the owner are a business expense. True False