8. Operating activities are concerned with: a. borrowing or lending. b. the sale or disposal of non-current assets. c. the trading and/or service operations of the business. d. none of the above

9. State the effect on profit and cash of a firm paying a creditor. a. Decrease in profit and decrease in cash. b. No effect on profit and decrease in cash. c. No effect on profit and no effect on cash. d. Decrease in profit and no effect on cash.

12. A common aspect of questionable figures in financial reports is: a. overstating figures for income and assets. b. overstating figures for income and understating figures for assets. c. understating figures for income and expenses. d. overstating figures for expenses and liabilities.