1) The payments to suppliers would generally be shown in which section of the statement of cash flows?

a) in the operating section as a cash outflow

b) in the operating section as a cash inflow

c) in the investing section as a cash outflow

d) in the financing section as a cash inflow

2) The reconciliation of net income to net cash flow from operating activities is reported under

a) the direct method only.

b) the indirect method only.

c) both the direct method and the indirect method.

d) neither the direct nor the indirect method.

3) All of the following adjustments are added to net income under the indirect method in calculating net cash flow from operating activities except

a) the loss on a sale of equipment.

b) a decrease in accounts receivable.

c) a decrease in accounts payable.

d) a decrease in inventory.

4) All of the following adjustments would be added back under the indirect method in determining net cash flow from operating activities except

a) amortization of bond discount.

b) increase in future income tax liability.

c) loss on sale of plant assets.

d) decrease in income taxes payable.

5) Under the direct method, cash payments to employees equals wage expense

a) plus decreases wages payable.

b) minus decreases in wages payable.

c) plus increases in wages payable.

d) plus increases in accounts payable