Why Are Gains and Losses from Asset Sales Removed from Net

question 6

Multiple Choice

Why are gains and losses from asset sales removed from net income when calculating the cash flows from operating activities?

• A)Selling assets is a noncash item.
• B)Gains and losses from asset sales are a financing activity.
• C)Gains and losses are not removed from net income when calculating the cash flows from operating activities
• D)The entire proceeds from sales of long-lived assets are included in investing activities.

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Definitions:

IVPB Antineoplastic

An intravenous piggyback delivery of antineoplastic medication, used in the treatment of cancer by administering drugs directly into the bloodstream.

Infusion Pump

A medical device used to deliver fluids, such as nutrients and medications, into a patient's body in a controlled manner.

Estimated Flow Rate

A calculation used to determine the speed at which a fluid is moving through a system, often used in medical settings to ensure proper dosing.

Microdrip Tubing

Specialized tubing used in medical settings that allows for very small and precise volumes of fluid to be administered intravenously.