Question Details

Cash provided by operating activities fails to take into account 




True or false:
1.	A loss on sale of equipment is added to net income in determining cash provided by operations under the indirect method.

	2.	In preparing a statement of cash flows, an increase in the Common Stock and Treasury Stock accounts during a period would be an investing activity.


	3.	Cash provided by operating activities fails to take into account that a company must invest in new fixed assets just to maintain its current level of operations.

	4.	Free cash flow equals cash provided by operations less capital expenditures and cash dividends.


	5.	Operating expenses + an increase in prepaid expenses - a decrease in accrued expenses payable = cash payments for operating expenses.





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