1)When the indirect method is used to determine net cash provided by (used in) operating activities, subtracting an increase in Accounts Receivable from net income eliminates the effect of recording revenue that:

A)increased net income, but did not impact cash.

B)decreased net income, but did not impact cash.

C)increased net income and increased cash flow.

D)decreased net income and decreased cash flow.

2)

Dover Co.'s comparative balance sheet indicated that the Equipment account increased by $40,000. Upon further investigation of the account changes, it is determined that Dover purchased equipment totaling $70,000 for the year. It also sold equipment with an original cost of $30,000 for $8,000 cash. Assuming these are the only transactions affecting the investing activities, Dover will report net cash flows provided by (used in) investing activities of:

A)($40,000).

B)($70,000).

C)($32,000).

D)($62,000).

3)

Which of the following would be included in cash flows from financing activities?

A)Cash proceeds from sales

B)Cash received from a sale of land

C)Cash dividends paid

D)Cash used to purchases of equipment