Using the Indirect Method, If Equipment Is Sold at a Gain

question 56

Multiple Choice

Using the indirect method, if equipment is sold at a gain, the

• A)sale proceeds received are deducted in the operating activities section.
• B)sale proceeds received are added in the operating activities section.
• C)amount of the gain is added in the operating activities section.
• D)amount of the gain is deducted in the operating activities section.

Identify standards as performance goals for evaluating and controlling operations.

Define variance and understand its role in cost control and performance evaluation.

Recognize the significance of financial reporting systems guided by the principle of exceptions.

Understand the concept and application of standard cost systems in accounting.

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Definitions:

Distribution

In statistics, the way in which values of a variable are spread or dispersed across a set of data.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from the mean.

Variability

The measure of how data points in a statistical distribution or dataset diverge from the average or mean value.

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution of data, commonly exemplified by the mean, median, or mode.