When Using the Indirect Method, the Gain from Selling a Long-Term

question 28

Multiple Choice

When using the indirect method, the gain from selling a long-term investment is recognized in which of the following?

• A) In the operating activity section and the investing activity section of the statement of cash flows.
• B) In the financing activity section of the statement of cash flows.
• C) In the noncash investing or financing activity supplemental section of the statement of cash flows.
• D) Gains are not recognized in the statement of cash flows under the indirect method.

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Definitions:

Excitatory Postsynaptic

Pertaining to the process in which a neurotransmitter increases the likelihood of an action potential firing in the postsynaptic neuron.

Electric Potential

The amount of electric potential energy per unit charge at a point in a field, representing the force that would be exerted on a positive test charge placed at that point.

Neuron

A nerve cell that is the basic building block of the nervous system, responsible for transmitting information throughout the body via electrical and chemical signals.

All-or-None

A principle that states a neuron fires with the same potency each time, though action is dependent on whether or not the stimulus meets the threshold.