Reliance Corporation Has Provided the Following Information for the Year

question 34

Multiple Choice

Reliance Corporation has provided the following information for the year ended December 31, 2014: • The equipment account balance increased $200,000.
• The equipment accumulated depreciation account increased $35,000.
• Equipment costing $50,000 was sold during the year resulting in a $10,000 gain.
• Depreciation expense recorded on the equipment during the year was $65,000.
Which of the following statements is correct with respect to determining cash flow from operating activities?

• A) Using the indirect method, net income is increased by the $35,000 increase in accumulated depreciation.
• B) Using the indirect method, net income is decreased by the $30,000 sales price of the equipment.
• C)Using the indirect method, net income is increased by the $65,000 depreciation expense.
• D)Using the indirect method, net income is increased by the $10,000 gain on the sale of the equipment.

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Definitions:

Team Size

Refers to the number of individuals within a group working together towards a common goal, impacting the team's dynamics, communication, and effectiveness.

Competencies

Refers to the skills, behaviours, and abilities that enable individuals to perform their roles effectively.

Perspectives

Different points of view or ways of looking at an issue or situation.

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To successfully complete or achieve a task, goal, or objective.