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

question 80

Multiple Choice

In calculating cash flows provided (used) by operating activities using the indirect method, a gain on the sale of equipment is

• A)added to profit.
• B)deducted from profit.
• C)ignored because it does not affect cash.
• D)not reported on a statement of cash flows.

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Definitions:

Ethical Relativism

A philosophical viewpoint suggesting that moral principles are valid only relative to specific social, cultural, or personal contexts.

Kant

Immanuel Kant, an 18th-century German philosopher who is known for his work on deontological ethics, the theory of knowledge, and aesthetics.

Autonomy

Independence. Intellectual autonomy is the ability of a rational person to reach his or her own conclusions about what to believe and what not to believe. Moral autonomy is the ability of a rational person to reach his or her own moral conclusions about what is right and what is wrong. (This does not mean that people will necessarily come to different conclusions.)

Psychological

Pertaining to the mind or mental processes, often focusing on behavior, cognition, emotions, and the mental functions in individuals.