Reference no: EM132887400

Problem 1: The following items are deducted from profit to arrive at the net cash flows from operating activities under the indirect method except

A. gain on sale of equipment

B. increase in inventory

C. decrease in accounts payable

D. patent amortization expense

Problem 2: The following items would appear in the operating activities section of the statement of cash flows under the direct method except

A. cash payments for operating expenses

B. cash receipts from customers

C. depreciation expense

D. cash receipts for dividends on equity securities

Problem 3: Declaration of cash dividends by the board of directors

A. is reported as an operating activity

B. is reported as an investing activity

C. is reported as a financing activity

D. is disclosed as note to statement of cash flows