1. In preparing the Statement of Cash Flows

	a	deprecation is added to net income when calculating Cash From Operations (under the Indirect Method).
		B.deprecation is added to net income when calculating Cash From Operations (under the Indirect Method) because depreciation is a non-cash expense.
		C. Investing Activities and Financing Activities do not require any adjustments to net income.
	d	All of the above.

2.

Why do some companies prefer the use of residual income over return on investment in decision making?

	a.	The concept.
	b.	ROI can motivate managers to make investment decisions that are not necessarily in the companys best interest.
	c.	The calculations for economic profit are easier.
	d.	The data needed to calculate return on investment are not always available.