12. A transaction that will increase working capital is: (Points : 3)

a. Sale of common stock b. Payment of accounts payable c. Collection of accounts receivable d. Purchase of marketable securities e. Adding back depreciation expense

17. Retirement of debt (paying off the balance) should be presented in a statement of cash flows in which of the following sections? (Points : 3)

a. Source of cash from investing activities b. Use of cash for investing activities c. Use of cash for financing activities d. Supplemental schedule to reconcile net income to net cash provided by operations e. Supplemental schedule of noncash investing and financing activities

19. Which of the following statements about depreciation is true? (Points : 3)

a. The depreciation method and the period of time selected to depreciate an asset can have a significant influence on income b. GAAP requires straight line depreciation c. The depreciation methods that recognize a large amount of depreciation in the later years of an asset's life are conservative d. The same depreciation method must be used for GAAP and tax purposes e. If an accountant wants to know what an assets useful life is, they look it up in GAA