43. Sale of an asset at a loss will affect which activities? a) Operating activity will have the loss added to profit; investing will increase for the proceeds on the sale. b) Operating activity will have the loss subtracted from profit; investing activities will increase for the proceeds on the sale. c) Operating activity will have the loss added to profit; financing activities will increase for the proceeds on the sale. d) Operating activity will have the loss subtracted to profit; financing activities will increase for the proceeds on the sale. 44. In preparing a cash flow statement, a conversion of bonds into common shares will be reported in: a) the financing section. b) the investing section. c) a separate schedule or note to the financial statements d) the shareholders' equity section. 45. In calculating cash flows from operating activities using the indirect method, a gain on the sale of equipment is: a) added to profit. b) deducted from profit. c) ignored because it does not affect cash. d) not reported on a cash flow statement. 46. Neo Corporation reported profit of $ 30,000 for the year. During the year, accounts receivable increased by $ 7,000, accounts payable decreased by $3,000 and depreciation expense of $ 5,000 was recorded. Net cash provided by operating activities for the year is: a) $25,000 b) $ 45,000. c) $ 29,000. d) $ 30,000 47. If there is a net decrease in cash we say that cash was: a) "provided by that activity b) used by that activity. c) "generated by that activity. d) 'absorbed by that activity. 48. In calculating net cash provided by operating activities using the indirect method, an increase in prepaid expenses during a period is: a) deducted from profit b) added to profit c) ignored because it does not affect profit. d) ignored because it does not affect expenses