Use the Following Information for Questions 102 and 103

question 74

Multiple Choice

Use the following information for questions 102 and 103.
A flood damaged a building and contents. Floods are unusual and infrequent in this area. The receipts from insurance companies totaled $500,000, which was $150,000 less than the book values. The tax rate is 30%.
-On the statement of cash flows (indirect method) , the receipts from insurance companies should

• A) be shown as an addition to net income of $350,000.
• B) be shown as an inflow from investing activities of $350,000.
• C) be shown as an inflow from investing activities of $500,000.
• D) not be shown.

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Definitions:

Negative Reinforcement

a behavior modification technique where the removal of an undesirable or unpleasant outcome after the display of a desired behavior increases the likelihood of the behavior being repeated.

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a period without exposure to the conditioned stimulus.

Stimulus Generalization

The process by which a conditioned response becomes associated with stimuli that are similar but not identical to the original conditioned stimulus.

Conditioned Response

A learned response to a previously neutral stimulus that has been repeatedly presented along with an unconditioned stimulus.