When Preparing the Operating Activities Section of the Statement of Cash

question 144

True/False

When preparing the operating activities section of the statement of cash flows under the indirect method, gains on sale of equipment are subtracted from net income.

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Definitions:

Legal Fees

Payments made to attorneys or law firms for legal services rendered, which may include consultations, representation in litigation, and preparation of legal documents.

Promoter Fees

Fees paid to an individual or company that facilitates the promotion or creation of a business opportunity or event.

Minimum Legal Capital

The least amount of capital that must be maintained by a corporation as required by law, intended to protect creditors.

Stock Subscriptions

Commitments made by investors to purchase shares of stock from a company, often before they are issued.