A Gain on the Sale of a Plant Asset in the Ordinary

question 65

Multiple Choice

A gain on the sale of a plant asset in the ordinary course of business should be presented in a statement of cash flows prepared using the indirect method as

• A) a cash inflow from investing activities.
• B) a cash inflow from financing activities.
• C) an addition to net income.
• D) a deduction from net income.

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Definitions:

Senators

Elected officials who serve as members of the Senate, the upper chamber of the legislature in many countries, including the United States, responsible for making laws.

House of Representatives

The lower chamber of the United States Congress, consisting of members who are elected based on population from each state to serve two-year terms.

Legislative

Legislative refers to the branch of government that has the authority to make, amend, and repeal laws.

Executive

The branch of government responsible for enforcing laws and administering public policy.