10a)

Which of the following would be subtracted from net income when determining cash flows from operating activities by the indirect method?

Choose the right answer below?

1. Depreciation expense
2. A gain on the sale of a depreciable asset
3. An increase in wages payable
4. A decrease in accounts receivable

10b)

Which of the following is true of defined contribution (DC) pension plans?

Choose the right answer below?

1. The investment risk in a DC plan is borne by the employer.
2. Accounting for DC plans is complex, and requires the company to recognize a liability.
3. The investment risk in a DC plan is borne by the employee.
4. Payments to retirees are determined by a formula stated in the plan.