A Corporation Uses the Indirect Method for Preparing the Statement

question 7

Multiple Choice

A corporation uses the indirect method for preparing the statement of cash flows. A fixed asset has been sold for $25,000 representing a gain of $4,500. The value in the operating activities section regarding this event would be

• A) $25,000
• B) $(4,500)
• C) $29,500
• D) $4,500

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Definitions:

Power

The ability or capacity to influence or control the behavior of others, often based on position, resources, or personal traits.

Bases of Power

The foundations from which an individual or group derives their ability to influence others, usually classified into categories like coercive, reward, legitimate, expert, and referent power.

Informal Systems

The unofficial and unwritten ways that an organization operates, including social networks, practices, and norms that influence behavior and decisions.

Organizational Politics

The use of power and social networking within a workplace to achieve changes that benefit the individual or group.