The Three Accounts Shown Below Appear in the General Ledger

question 38

Essay

The three accounts shown below appear in the general ledger of Glaus Corp. during 2010.

Instructions
From the postings in the accounts, indicate how the information is reported on a statement of cash flows using the indirect method. The loss on sale of equipment was $5,000. (Hint: Cost of equipment constructed is reported in the investing activities section as a decrease in cash of $58,000.)

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Definitions:

Dependent Variable

In an experimental setting, the variable being tested and measured, which is expected to change under the influence of the independent variable.

Independent Variable

In an experimental setting, this is the variable that is manipulated or changed by the researcher to observe its effect on the dependent variable.

Sample

Group of subjects selected from a larger population of subjects, usually selected randomly.

Population

In statistics and research, the entire group of individuals or instances about whom the information is desired; in biology, all the organisms of the same group or species living in a particular geographic area.