On a Statement of Cash Flows Using the Indirect Format,the

question 92

Multiple Choice

On a statement of cash flows using the indirect format,the loss on the sale of a building is:

• A)ignored,since it is a noncash expenditure
• B)added to net income in the operating activities section
• C)included as an outflow in the investing activities section
• D)deducted from net income in the operating activities section

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Definitions:

Magic Number

Refers to the short-term memory capacity, traditionally considered to be 7±2 items, as postulated by psychologist George A. Miller.

Short-term Memory

The ability to keep a limited quantity of data actively accessible in one's consciousness for a brief duration.

Miller

George A. Miller was an American psychologist who made significant contributions to the cognitive psychology field, notably proposing that the human mind can hold 7 ± 2 pieces of information in short-term memory.

Maintenance Rehearsal

A cognitive process of repeatedly reviewing information to be retained in short-term memory and possibly encoded into long-term memory.