Acct

True or False For asset accounts, increases are added to the statement of cash flows.

False

True or False for liability accounts decreases are added to the statement of cash flows

False

True or False negative free cash flow suggests that the company did not generate enough cash flow from its operating activities to fund its capital expenditures and dividend payments

False

True or False when a company issues common stock in exchange for cash the cash inflow is recorded in the investing activities section of the statement of cash flows

False

True or False a company can have a net loss and still generate a positive net cash provided by operating activities in its statement of cash flows

True

True or False a newly formed company with enormous growth prospects would be expected to have negative free cash flow during its start up phase

True

True or False cash payments to retire bonds payable are reported as a cash outflow in the financing activities section of the statement of cash flows.

True

True or False for stock holders equity accounts increases are added to the statement of cash flows

True

True or False free cash flow is net cash provided by operating activities less dividends

True

True or False paying taxed to governmental bodies is considered an operating activity on the statement of cash flows

True

True or False the change in the cash balance must equal the changes in all other balance sheet accounts besides cash

True

True or False the sale of long-term investment for cash would be classified as an investing activity in the statement of cash flows

True

True or False under the indirect method of determining the net cash provided by operating activities on the statement of cash flows a decrease in accounts receivable is added to net income

True