In Calculating Cash Flows Provided (Used) by Operating Activities Using

question 65

Multiple Choice

In calculating cash flows provided (used) by 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)not reported on a statement of cash flows.

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Definitions:

Low Power

A state in which an individual or group possesses limited ability to influence others or events.

Distribution of Power

The way power is allocated and exercised within a society, organization, or relationship, impacting decision-making and control.

Impersonal Institutions

Organizations or structures that operate without regard to individuals' personal feelings or situations, often focusing on procedures, rules, and regulations.

Metacommunication

Communication about communication; the underlying messages or meanings in what is said or done.