Question 10 1. Q: In the indirect method of preparing cash flows from operating activities, depreciation expense is added back to net income because: A. Depreciation is a source of cash. B. Depreciation doesn't affect net income or cash flows. C. Depreciation is a non-cash expense. D. None of the above. 1 points

Question 11 1. Q: Typically, a liability will be classified as Current if the obligation must be satisfied: A. Within 6 months or less from the balance sheet date B. Within one year or less from the balance sheet date C. Within 6 months or less from the liability's initiation date D. Within one year or less from the liability's initiation date 1 points

Question 12 1. Q: On January 1, a company borrows $12,000. The annual interest rate is 4 percent. Loan repayment, including all interest, due in 6 months. The company prepares quarterly financial statements on June 30. What amount of cash payment for total interest expense will the company report on that date as a result of this borrowing? A. 180 B. 90 C. 120 D. 150