Question: Which of the following statements related to reporting cash flows from investing and financing activities is false? Multiple Choice Reporting of financing activities is the same under the direct method and indirect method. Changes in long-term liability accounts and equity accounts are analyzed to determine cash flows from financing activities. Changes in long-term asset accounts are analyzed to determine cash flows from investing activities. The direct method applies accrual accounting while the indirect method applies cash basis accounting. Reporting of investing activities is the same under the direct method and indirect method.