When Using the Indirect Method, the Gain from Selling a Long-Term

question 28

Multiple Choice

When using the indirect method, the gain from selling a long-term investment is recognized in which of the following?

• A) In the operating activity section and the investing activity section of the statement of cash flows.
• B) In the financing activity section of the statement of cash flows.
• C) In the noncash investing or financing activity supplemental section of the statement of cash flows.
• D) Gains are not recognized in the statement of cash flows under the indirect method.

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Definitions:

Graphed

Represented data or quantities visually using a graph, such as a pie chart, line graph, or bar chart.

Slope

In mathematics, the slope is the measure of the steepness, incline, or grade of a line, calculated as the ratio of the vertical change to the horizontal change between two points on the line.

Point A

In the context of graphs or models, a specific point that might denote a specific situation or condition in an analysis or illustration.

Point D

A specific point on a graph or in a dataset, often used in economics to denote either an equilibrium point or a point of interest in a graphical analysis.