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:

Employees

Individuals who are hired to perform services or work for an organization or employer, typically in return for compensation.

Dual Factor Theory

Dual Factor Theory, also known as Herzberg's motivation-hygiene theory, proposes that job satisfaction and dissatisfaction arise from two separate sets of factors—motivation factors that lead to job satisfaction and hygiene factors that prevent dissatisfaction.

Hygiene Factors

According to Herzberg's two-factor theory, aspects of the work environment that can cause dissatisfaction if missing, such as salary, company policies, and working conditions, but do not necessarily motivate when improved.

Need-Based Theories

A group of theories in psychology that focus on understanding the different needs that motivate human behavior and actions.