A Gain on the Sale of a Fixed Asset Is

question 161

Multiple Choice

A gain on the sale of a fixed asset is reported on the statement of cash flows:

• A) as an adjustment to operating activities under the direct method
• B) as an adjustment to operating activities under the indirect method
• C) as an adjustment to operating activities, regardless of the method used
• D) None of these answers is correct.

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Definitions:

Professionals

Individuals who possess specialized knowledge, skills, and often certification, in a particular field or occupation.

Section 11

A provision within the Securities Act of 1933 that allows investors to sue for damages if a registration statement contains untrue statements or omits crucial facts.

Securities Act

A law enacted in 1933 that governs the initial sale of securities (stocks, bonds) by regulating the offer and sale of these securities to protect investors from fraud.

Auditor

A professional who examines the financial records of an organization to ensure accuracy, compliance with standards, and to suggest improvements.