QUESTION 9

1. On the statement of cash flows using the indirect method, patent amortization expense will

   	a.	be added to net income in the operating section.
   	b.	appear as an outflow of cash in the investing section.
   	c.	be deducted from net income in the operating section.
   	d.	appear as an inflow of cash in the investing section.

1 points

QUESTION 10

1. Variable costs are costs that:

   	a.	Neither of the above.
   	b.	Vary in total directly and proportionately with changes in the activity level.
   	c.	Remain the same per unit at every activity level.
   	d.	Both (a) and (b) above.