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Which of the following statements related to the preparation of the statement of cash flows is
false?
A company may report cash flows from operating activities using either the direct or indirect
method.
Interest expense may be reported under operating activities or financing activities based on
which one results in better cash flows.
Cash dividends paid to shareholders are classified as a financing activity.
Purchase of an intangible asset is classified as an investing activity.
Repaying the principal of long-term notes payable is classified as a financing activity.

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Which of the following statements related to the preparation of the .pdf

  • 1. Which of the following statements related to the preparation of the statement of cash flows is false? A company may report cash flows from operating activities using either the direct or indirect method. Interest expense may be reported under operating activities or financing activities based on which one results in better cash flows. Cash dividends paid to shareholders are classified as a financing activity. Purchase of an intangible asset is classified as an investing activity. Repaying the principal of long-term notes payable is classified as a financing activity.