1)The amount of cash paid for dividends for the current year can be calculated by the following formula: A.beginning dividends payable plus ending dividends payable minus dividends declared B.beginning dividends payable minus ending dividends payable plus dividends declared C.beginning dividends payable plus ending dividends payable plus dividends declared D.beginning dividends payable minus ending dividends payable minus dividends declared

2) Nakuru Inc. sells its building with an original cost of $500,000 for $450,000 and makes a loss of $50,000 on the sale. Which of the following is true:

A.$50,000 loss is subtracted in the operating activities

B.$450,000 is added in the investing activities

C.$500,000 is subtracted in the investing activities

D.Both A. and B. above

3)Only the operating activities section of a statement of cash flows is prepared differently when using the indirect method. True False

4) The majority of organizations use the indirect method when preparing their statement of cash flows. True False

5)Beyond the Boardroom Corporation sold used equipment with a book value of $25,000 for $29,000. The indirect method statement of cash flows will reflect:

A.an addition of $29,000 in the investing activities section and a deduction of $4,000 in the operating activities section

B.an addition of $25,000 in the investing activities section and an addition of $4,000 in the operating activities section

C.an addition of $25,000 in the investing activities section and a deduction of $4,000 in the operating activities section

D.an addition of $29,000 in the investing activities section and an addition of $4,000 in the operating activities section