In a Statement of Cash Flows Prepared by the Indirect

question 43

Multiple Choice

In a statement of cash flows prepared by the indirect method, which of the following events would be added to net income?

• A)receipt of dividends on an available-for-sale investment
• B)equity-method income from an investment in excess of dividends
• C)proceeds from the sale of an available-for-sale investment
• D)loss on the sale of plant assets

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Definitions:

Missouri Compromise

An 1820 agreement in the United States Congress that admitted Missouri as a slave state and Maine as a free state, maintaining the balance of power between North and South in the Senate.

Panic of 1819

The Panic of 1819 was the first widespread economic crisis in the United States, which occurred after a period of high foreign demand for American goods and expansive lending practices ended, leading to widespread financial distress.

Supreme Court

The highest judicial body in a country, often responsible for interpreting the constitution, reviewing laws, and adjudicating disputes that involve national significance.

Marshall

A term that can refer to a high-ranking officer in military matters, or to George C. Marshall, the U.S. Army Chief of Staff during World War II and later Secretary of State, who proposed the Marshall Plan for European recovery.