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

question 36

Multiple Choice

In calculating cash flows provided (used) by operating activities using the indirect method, a loss 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:

Production Control

The activity of monitoring and controlling any particular production or operation, aiming to ensure that production runs smoothly, efficiently, and to schedule.

Needed Adjustments

Modifications or changes required to achieve desired objectives or to correct deviations from plans.

Production Supervisor

A professional responsible for overseeing the daily operations of manufacturing plants or production units, ensuring efficiency and quality output.

Work Assignments

Specific tasks or duties assigned to employees as part of their job responsibilities, often contributing to larger projects or business goals.