On an Indirect Method Statement of Cash Flows, a Gain

question 42

Multiple Choice

On an indirect method statement of cash flows, a gain on the sale of capital assets is:

• A) deducted from net income
• B) reflected in the investing activities section
• C) added to net income
• D) reflected in the financing activities section

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Definitions:

Demand

How much of a product or service shoppers are prepared and financially able to buy across a range of prices within a set period.

Consumer Income

The total earnings of consumers, encompassing wages, dividends, and other sources of income, which determine their purchasing power.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing to purchase at various prices.

Price of Belts

This refers specifically to the market value or cost at which belts are sold or purchased.