1)Which section of the statement of cash flows may be prepared using either the direct method or the indirect method?

Multiple Choice

All of these answers are correct.

Operating activities

Financing activities

Investing activities

2)

When using the indirect method to complete the cash flows from operating activities section, what is the proper treatment for an increase in the accounts receivable balance?

Multiple Choice

Add the increase to net income

Deduct the increase from net income

Add the increase to cash collections from customers

Add the increase to cash payments to suppliers