In Calculating Cash Flows from Operating Activities Using the Indirect

question 4

Multiple Choice

In calculating cash flows from 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:

Phonemic Encoding

The process of converting sounds into mental representations of letters or words during the memory process.

Retrieval Cue

A retrieval cue is an external or internal stimulus that helps trigger the recall of information stored in memory.

Implicit Memory

Implicit memory is a type of memory that enables us to perform tasks without conscious awareness of these previous experiences.

Explicit Memory

A type of long-term memory involving conscious recollection of factual information, previous experiences, and concepts.