1.

When preparing a statement of cash flows, an increase in accounts payable during a period would require which of the following adjustments in determining cash flows from operating activities?

Indirect MethodDirect Method

a. increaseincrease

b. increasedecrease

c. decreaseincrease

d. decreasedecrease

2.When preparing a statement of cash flows, a decrease in accounts receivable during a period would cause which one of the following adjustments in calculating cash flows from operating activities?

Direct MethodIndirect Method

a. increasedecrease

b. increaseincrease

c. decreasedecrease

d. decreaseincrease

3.When preparing a statement of cash flows, a decrease in prepaid insurance during a period would require which of the following adjustments in determining cash flows from operating activities?

Indirect MethodDirect Method

a. decreasedecrease

b. increaseincrease

c. increasedecrease

d. decreaseincrease

4.All of the following would be classified as financing cash flowsexcept

a. repurchases of the company's common shares.

b. interest paid on current liabilities.

c. proceeds from the sale of shares.

d. dividends paid on preferred shares.