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Question 7 (1 point) Depreciation is an expense that has no effect on cash flow. True False Question 8 (1 point) The Statemen
Question 10 (1 point) Information to prepare the statement of cash flows usually comes from comparative balance sheets and th
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Answer #1

7. TRUE

Depreciation is an expense that has no effect on cash flow. Depreciation is allocation of the cost of asset over its useful life. It is a non cash expense.

8. TRUE

Cash includes both cash & cash equivalents in statement of cash flows.

9. FALSE

Investing activities include when the investments are made by the business. When owners invest cash then it is part of financing activities.

10. TRUE

Information for statement of cash flows comes from comparative balance sheets and current income statement. Comparative balance sheets are needed to analyse the changes in assets and liabilities while current income statement is needed to find the cash from operating activities.

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