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:

General Sherman

refers to William Tecumseh Sherman, a Union general during the American Civil War, known for his "March to the Sea" campaign, which aimed to demoralize the South.

Atlanta

A major city in Georgia, known for its significant role in both the Civil War and the civil rights movement.

Mississippi River

One of the largest rivers in the United States, flowing south from Minnesota to the Gulf of Mexico, and playing a significant role in the country’s commerce and ecology.

Vicksburg

A significant civil war battle that took place in 1863 in Vicksburg, Mississippi, marking a turning point in the war with the Union's victory.