Indicate whether the statement is true or false. I. The declaration and issuance of a stock dividend would be reported on the statement of cash flows. a. True b. False 2. Using measures to assess a business's ability to pay its current liabilities is called current position analysis. a. True b. False 3. The return on total assets measures the profitability of total assets, without considering how the assets are financed. a. True b. False 4. Trading securities should be reported on the financial statements at fair market value. . re b. False 5. In a common-sized income statement, each item is expressed as a percentage of net income. a. True b. False 6. Free cash flow is cash flow from operations less cash used to purchase fixed assets to maintain productive city. a. True b. False 7. The excess of current assets over current liabilities is referred to as working capital. a. True b. False 8. If the bonds are purchased between interest dates, the purchase price includes accrued interest since the last interest payment. a. True b. False 9. The financial statements resulting from combining parent and subsidiary statements are called consolidated statements. a. True b. False 10. A building with a cost of $153,000 and accumulated depreciation of $42,000 was sold for an $11,000 gain. When using the indirect method, the cash generated from this investing activity is $121,000. a. Te b. False