In Calculating Cash Flows from Operating Activities Using the Indirect

question 2

Multiple Choice

In calculating cash flows from operating activities using the indirect method, a gain on the sale of equipment is

• A) added to net income
• B) deducted from net income
• C) ignored because it does not affect cash
• D) reported supplementally as a noncash investing and financing activity

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Definitions:

Amino Acid

Organic compounds containing an amine (-NH2) and a carboxyl (-COOH) functional group, along with a side chain; they are the building blocks of proteins.

Complete Proteins

Proteins that contain all nine essential amino acids necessary for the dietary needs of humans.

Side Chain

The part of an organic molecule that is attached to the main chain (or backbone) of the molecule, which can influence the molecule's properties and reactivity.

Valine

An essential amino acid that is crucial for muscle growth, tissue repair, and energy provision in the body.