14)

When the direct method is used to determine the net cash flow from operating activities, other operating expenses are converted into cash outflows for payments to suppliers of services by:

Multiple Choice

• adding changes in prepaid expenses and accrued liabilities to other expenses.

• subtracting changes in prepaid expenses and accrued liabilities from other expenses.

• subtracting increases in prepaid expenses and decreases in accrued liabilities from other expenses.

• adding increases in prepaid expenses and decreases in accrued liabilities to other expenses.