If the direct method is used in presenting operating cash flows, the amount of total net operating cash flow will be:

Equal to the amount that would be presented under the indirect method.

Less than the amount that would be presented under the indirect method.

Greater than the amount that would be presented under the indirect method.

Any of the above may be correct, depending upon the circumstances.

2) Which of the following is reported as an investing activity on the statement of cash flows under US GAAP?

Sale of an investment security accounted for as available for sale

Issuance of a long-term note payable

Reissue of shares held as treasury stock

Payment of interest on short term notes payable