In Calculating Cash Flows from Operating Activities Using the Indirect

question 21

Multiple Choice

In calculating cash flows from operating activities using the indirect method, a loss on the sale of equipment will appear as a(n)

• A)subtraction from net income.
• B)addition to net income.
• C)addition to cash flow from investing activities.
• D)subtraction from cash flow from investing activities.

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Definitions:

Biodiesel

A renewable, clean-burning diesel substitute produced from a diverse mix of feedstocks including vegetable oils, animal fats, or recycled restaurant grease.

Economically Viable

The ability of an entity, project, or product to generate profit or financial benefits exceeding its costs over a period.

Industrial Revolution

The period of major industrialization that took place during the late 1700s and early 1800s, changing economies, societies, and cultures through the introduction of machinery.

Improved Standards

Enhancements or upgrades to guidelines, practices, or benchmarks that elevate the quality and efficiency of processes, products, or systems.