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.

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Definitions:

Illegal Acts

Actions that are forbidden by law and subject to official punishment.

Physiological Need

A basic bodily requirement.

Basic Requirement

Fundamental needs or conditions that must be met to achieve a goal or maintain a standard.

Drive-Reduction Theory

the idea that a physiological need creates an aroused state (a drive) that motivates an organismto satisfy the need