Click to watch the Tell Me More Learning Objective 2 video and then answer the questions below. 1. Under the indirect method a. net income is the first amount reported on the statement of cash flows. b. the balance sheet accounts should be analyzed in their order of liquidity. c. the first account normally analyzed is Cash. d. a change in any balance sheet account (excluding cash) can be analyzed in terms of changes in other balance sheet accounts. 2. Under the indirect method, which of the following are deducted from net income? a. Decreases in accounts receivable b. Increases in inventory c. Increases in accounts payable d. Decreases in prepaid expenses 3. Under the indirect method, a loss on the sale of land is a. deducted from net income. b. added to net income. c. ignored. d. not reported as part of net income