Which of the Following Statements Is false regarding How the Cash

question 151

Multiple Choice

Which of the following statements is false regarding how the cash flow effects of the changes in the equipment and accumulated depreciation accounts would be reported on a statement of cash flows if the indirect method is used to prepare the operating activities section?

• A) Cash proceeds from the sale of the equipment would be reported as a cash inflow in the investing activities section.
• B) The cash paid to purchase equipment would be reported as a cash outflow in the investing activities section
• C) Depreciation expense would be added to net income in the operating activities section.
• D) A loss on the sale of the equipment would be subtracted from net income in the operating activities section

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Definitions:

Assignment Symbol

A symbol used in programming languages to assign a value to a variable, typically represented by "=".

Relational Symbol

A symbol used in programming and mathematics to compare two values; examples include >, <, ==, !=.

Nested If Statement

An If statement that is contained within another If statement, allowing for more complex decision-making processes with multiple conditions.

Second If-Else Statement

A subsequent conditional statement in a program that executes one block of code if its condition is true, otherwise executes another block of code.