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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Definitions:

Chi-Square Test

A statistical test used to determine if there is a significant association between two categorical variables.

Variance

A statistical measure that represents the dispersion or spread of data points in a data set, measuring how far each number in the set is from the mean.

Two-Sample Test

A statistical test used to compare the means of two independent groups to determine if there is a statistical difference between them.

Paired Samples

Samples that involve matched pairs of similar units or the same units under different conditions for comparative studies.