Assume the indirect method is used. Purchased land for cash

1. For the following transaction, indicate where, if at all,
it would be classified on the statement of cash flows. Assume the indirect
method is used. Decrease in income taxes payable. (Points: 4) Operating
activities section

Investing activities section

Financing activities section

Does not represent a cash flow

2. For the following transaction, indicate where, if at all,
it would be classified on the statement of cash flows. Assume the indirect
method is used. Purchased land for cash. (Points: 4)

Operating activities section

Investing activities section

Financing activities section

Does not represent a cash flow

3. Starting with net income and adjusting it for items that
affected reported net income but which did not affect cash is called the
(Points: 4)

Direct method.

Indirect method.

Working capital method.

Cost-benefit method.