In Calculating Cash Flows Provided (Used) by Operating Activities Using

question 66

Multiple Choice

In calculating cash flows provided (used) by operating activities using the indirect method, a loss on the sale of equipment will appear as a(n)

• A)subtraction from profit.
• B)addition to profit.
• C)addition to cash flow from investing activities.
• D)subtraction from cash flow from investing activities.

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Definitions:

Transaction

A financial operation between two parties involving an exchange or transfer of goods, services, or funds.

Social Security Income

Social Security Income (SSI) is a government program that provides financial assistance to individuals who are elderly, blind, or have disabilities, based on income needs.

Taxable Amount

The taxable amount is the portion of income or a financial transaction that is subject to taxes according to the laws and regulations of the tax jurisdiction.

Tax Return

A form or forms filed with a taxing authority that report income, expenses, and other pertinent tax information, used to calculate tax liability.