On the Statement of Cash Flows Prepared by the Indirect

question 82

Multiple Choice

On the statement of cash flows prepared by the indirect method, a $50,000 gain on the sale of investments would be:

• A) deducted from net income in converting the net income reported on the income statement to cash flows from operating activities.
• B) added to net income in converting the net income reported on the income statement to cash flows from operating activities.
• C) added to cash received from the sale to determine cash flows from investing activities.
• D) deducted from cash received from the sale to determine cash flows from investing activities.

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Definitions:

Auditory Canal

A tube-like structure that leads from the outer ear to the eardrum, conducting sound waves to the eardrum.

Semicircular Canal

Structures in the inner ear involved in maintaining balance and sensing motion.

Cochlea

A spiral-shaped, fluid-filled inner ear structure responsible for transforming sound waves into electrical signals that the brain interprets as sound.

Cochlea

A spiral-shaped, fluid-filled inner ear structure that is crucial for sound transduction, leading to the perception of sound.