1) Which method for presenting the operating activities section of the statement of cash flows is the preferred for both US GAAP and IFRS?

Direct Method

Indirect Method

Allowance Method

No method has been identified as preferred over any other method

2)

For a US Firm, Which of the following would not be included in the operating activities section of the Statement of Cash Flows?

Group of answer choices

Paying $30,000 for income taxes

Paying $75,000 of dividends to common stockholders

Paying $250,000 of interest on outstanding bonds payable

Payment of $500,000 in salaries to executives