Use the Following Information for Questions 102 and 103

question 35

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 flood loss should

• A) be shown as an addition to net income of $105,000.
• B) be shown as an addition to net income of $150,000.
• C) be shown as an inflow from investing activities of $105,000.
• D) not be shown.

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Definitions:

Negative Message

Communication that conveys a refusal, denial, or unfavorable information, often requiring careful wording to maintain goodwill.

Budget

An estimate of income and expenditure for a set period of time, often used to plan and control finances.

Dealing With Criticism

The ability to handle negative feedback constructively and use it as a tool for personal or professional growth.

Criticism

The expression of disapproval or the identification of faults, either constructively to encourage improvement or negatively.