Under the indirect method of preparing the statement of cash flows, which of the following is added to net income in the operating activities section?

The act of encouraging non-value-adding actions on the part of management in order to improve indicated performance is referred to as:

a. The use of a relative-performance contract. b. Gaming the performance indicator. c. The use of fixed-performance contract. d. Goal congruency. e. Linear optimization analysis.

Which of the following will be shown under the investing activities section of the statement of cash flows?

A) purchased treasury stock for cash B) issued notes payable to purchase equipment C) paid cash dividends to stockholders D) loaned money to a third party