1) Which of the following statements is true when the indirect method is used to determine the net cash provided by operating activities?

a) A gain recorded on the sale of a noncurrent asset is added to net income in the operating activities section of the statement of cash flows.

b) A gain recorded on the sale of a noncurrent asset is subtracted from net income in the operating activities section of the statement of cash flows.

c) A gain recorded on the sale of a noncurrent asset is added to the net cash provided by (used in) investing activities within the statement of cash flows.

d) A gain recorded on the sale of a noncurrent asset is subtracted from the net cash provided by (used in) investing activities within the statement of cash flows.

2) If a business's accounts payable balance decreases during the period, when the indirect method is used:

a) The amount of the decrease is added within the operating activities section of the statement of cash flows.

b) The amount of the decrease is subtracted within the investing activities section of the statement of cash flows.

c) The amount of the decrease is subtracted within the operating activities section of the statement of cash flows.

d) The amount of the decrease is added within the investing activities section of the statement of cash flows.