2) What is the different between Indirect and Direct method?
A) No different
B) Both methods are the same but depreciation is used on the direct method.
C) Cash is not used on the direct method.
D) The investment and financing activities are the same for both methods.
3) Assume you had a change in fair market value on trading securities, which statement of cash flow would it affect?
A) Operating activities.
B) Financing activities
C) Investment activities.
D) None from above.

5) Assume the following facts:
Purchase of Treasury stock 6,000, Unrealized loss on available for sale securities 4,000,
Issued for cash Common stock 9,000, gave a stock dividend 2,000 and also issued a long
term debt for cash 75,000. The statement of cash flow for Finance?
A) 95,000
B) 75,000
C) 81,000
D) 78,000
9) In the statement of cash flow investment activities, the purchase of fixed asset on
credit, would affect it by:
A) Increase Cash flow from Investing activities.
B) Decrease cash flow from operating activities.
C) Decrease cash flow from investing activities.
D) None of the above.
10) Which of the following items below would affect current ratio?
A) Decrease in accounts payable.
B) Decrease in Mortgage payable.
C) Net Income.
D) None of the above.