Question 1

In calculating net cash provided by operating activities using the indirect method, an increase in prepaid expenses during a period is

Question 1 options:

	ignored because it does not affect profit.
	deducted from profit.
	added to profit.
	ignored because it does not affect expenses.

Q 2

The following title would be present in the cash flow statement when there is a negative cash flows within the financing activities:

Question 2 options:

	cash flows from financing activities.
	net cash provided by financing activities.
	net cash used by financing activities.
	net cash flows from financing activities.

Q 3

In preparing a cash flow statement, issuing common shares for cash will be reported in

Question 3 options:

	a separate schedule or note to the financial statements.
	the shareholders' section
	the investing section.
	the financing section.