A Corporation Uses the Indirect Method for Preparing the Statement

question 7

Multiple Choice

A corporation uses the indirect method for preparing the statement of cash flows. A fixed asset has been sold for $25,000 representing a gain of $4,500. The value in the operating activities section regarding this event would be

• A) $25,000
• B) $(4,500)
• C) $29,500
• D) $4,500

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Definitions:

Synaptic Responsiveness

The ability of synapses, the connections between neurons, to change in strength in response to increases or decreases in their activity.

Short-Term Memories

Memories that are held for a short period of time, typically seconds to minutes, before being forgotten or transferred to long-term memory.

Long-Term Memories

Memories that can last from a few days to a whole lifetime, involving the storage of information about past events, experiences, and learned skills.

Chemical Changes

Transformations that result in the formation of new substances, involving the making or breaking of bonds between atoms.