True/False Section. Please choose the correct answer.

When preparing a statement of cash flows using the indirect method, an increase in accounts receivable is added to net income.

a. True

b. False

Interest paid on bonds payable would be included in the financing activities category on the statement of cash flows.

a. True
b. False

Determining net cash flows from operating activities using the direct method reveals cash collected from customers.

a. True
b. False

Because noncash investing and financing transactions do not affect cash, they should not be reflected in the body of the statement of cash flows.

a. True

b. False

Dividends declared but unpaid are reflected in the financing activities section of the statement of cash flows.

a. True
b. False