Question 3 Using the indirect method to calculate net cash provided for used) by operating activities, which of the following is subtracted from net income? 1. Depreciation expense. O 2 Amortization of intangible asset 3. Decrease in income taxes payable. 4. Bad debts expense 5. None of these answers is correct Question 4 The defined benefit obligation is always increased by O 1. current service cost and payments to retirees. O 2. current service cost and interest cost. O 3. interest cost and actuarial gains. 4. current service cost and past service costs. Question 5 A Corporation that incurs a taxable loss is entitled to offset the loss as follows: O 1. Carried back 7 years and forward 3 years 2. Carried back 3 years and forward 20 years O 3. Carried back 3 years and forward 10 years 4. Carried back 10 years and forward 3 years Question 6 A gain on the disposal of a non-current asset: O 1. Involves cash inflows. O 2. Involves cash outflows. O 3. Does not reflect any cash flow and is the result of an investing activity, O 4. Is the result of an investing activity. 5. Does not reflect any cash flow. Question 8 If preferred shares are noncumulative, then: 01. The preferred shareholders are entitled to current and arrears of dividends before common shareholders can receive dividends. 2. Cash dividends not declared in prior years are lost permanently, 3. The preferred shareholders are only entitled to a specific percent of the cash dividends, regardless of the amount declared, 4. Prior years' cash dividends must be paid to the preferred shareholders before any dividends may be paid to the common shareholders