Question Details

The reconciling entry for depreciation expense in a worksheet 


True or false:
1.	The statement of cash flows classifies cash receipts and cash payments into two categories:  operating activities and nonoperating activities.

	2.	Financing activities include the obtaining of cash from issuing debt and repaying the amounts borrowed.

	3.	The adjusted trial balance is the only item needed to prepare the statement of cash flows.

	4.	Under the indirect method, retained earnings is adjusted for items that affected reported net income but did not affect cash.

	5.	The reconciling entry for depreciation expense in a worksheet is a credit to Accumulated Depreciation and a debit to Operating-Depreciation Expense.
a6.	Under the direct method, the formula for computing cash collections from customers is sales revenues plus the increase in accounts receivable or minus the decrease in accounts receivable.




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