How Should a Gain on the Sale of Equipment Be

question 21

Multiple Choice

How should a gain on the sale of equipment be reflected in the operating section of the cash flow statement when using the indirect method?

• A)As a deduction from net income
• B)As a cash inflow
• C)As an addition to net income
• D)It is not reflected in the operating section.

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Definitions:

Shared Leadership

A dynamic, interactive influence process through which individuals in teams lead one another.

Influence Process

The methods or techniques used to affect the behavior or attitudes of individuals or groups.

Social Exchange

Means that people build human relationships and trust through exchanges of favors based on reciprocity.

Firm Reliance

A strong dependency or trust in something or someone, often in the context of business or personal relations.