In Calculating Cash Flows from Operating Activities Using the Indirect

question 74

Multiple Choice

In calculating cash flows from operating activities using the indirect method, a gain on the disposal of equipment is

• A) added to net income.
• B) deducted from net income.
• C) ignored because it does not affect cash.
• D) not reported on a statement of cash flows.

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Appraisal Criterion

The standards or benchmarks used to evaluate an employee's performance or the value of an asset.

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Explicit benchmarks or expectations set for tasks or job roles to measure the quality and efficiency of work.

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