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Question 1 10 pts Under the indirect method, which of the following items would be subtracted from net income to determine the cash flow from operating activities? o Loss on the sale of equipment o Increase in acerued interest payable e Increase in the balance of accounts receivable e Depreciation Expense D | Question 2 10 pts When using the indirect method to complete the cash flows from operating activities section, what is the proper treatment of depreciation expense? Disregard depreciation expense because it is a non-cash expense Add depreciation expense to net income - Disregard depreciation expense because it relates to an investing activity e Subtract depreciation expense from net income D Question 3 10 pts Which method is used by the majority of US companies to report cash flows from operating activities? Accrual method Direct method o Computational method o Indirect method