When Preparing the Operating Activities Section of the Statement of Cash

question 68

True/False

When preparing the operating activities section of the statement of cash flows using the direct method,a gain or loss from selling equipment is reported in the operating activities section of the statement of cash flows.

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Definitions:

Hypothesis

An assumption or proposition made as a basis for reasoning or research, without any assumption of its truth.

Explanation

A statement about why or how something is the case.

Reliable

Describes something or someone that consistently performs well or can be trusted to be accurate.

Inconsistent

Lacking compatibility or uniformity; actions, beliefs, or statements that do not align or are contradictory.