1. During the current year, Mapor Co. purchased bonds issued by Healor Co.Mapor Co. prepares its statement of cash flows using the indirect method. In which section of the statement should Mapor Co. report the purchase?

a.Investing activities.

b.Supplemental disclosures.

c.Operating activities.

d.Financing activities.

2.Short-term liabilities typically include:

a.Salaries Payable

b.Unearned Revenue

c.Both A and B

d.Mortgage Payable

3.Techner Company is a defendant in a current lawsuit that it estimates a $850,000 probable loss.The loss contingency should be:

a.Disclosed and accrued as a liability

b.Disclosed but not accrued as liability

c.Not Disclosed, but accrued as a liability

d.Not Disclosed and not accrued as a liability