Answer the following statements true (T) or false (F)
1. When preparing the statement of cash flows using the indirect method, a loss on the sale of plant assets must be shown as a subtraction from the investing activities section.
2. When preparing the statement of cash flows using the indirect method, a decrease in current liabilities is added to the net income to arrive at net cash provided by operating activities.
3. While preparing a statement of cash flows using the indirect method, an increase in current assets is added to net income to arrive at net cash provided by operating activities.
4. The change in Accounts Receivable is shown as a negative cash flow in the adjustments to net income.
Shell, Inc. uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance sheet:
1. FALSE
2. FALSE
3. FALSE
4. FALSE
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