Reference no: EM132934246

Problem 1: When the indirect method is used to calculate and report net cash provided or used by operating activities, net income is adjusted for all, but which of the following?

1-Changes in non-current assets and non-current liabilities.

2-Gains and losses of non-operating items.

3-Depreciation and amortization expenses.

4-Changes in current liabilities related to operating activities.

5-Income and expenses that did not contribute or use cash.

Problem 2: When preparing a statement of cash flows using the indirect method, each of the following should be classified as an operating cash flow except:

1-Product of the sale of a long-term asset without gains or losses.

2-An increase in accounts receivable.

3-Decrease in increased expenses payable.

4-Decrease in accounts payable.

5-An increase in expenses paid in advance.