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For a Firm Using the Indirect Method,the Gain on Sale

question 107

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For a firm using the indirect method,the gain on sale of equipment should be added back to net income to arrive at cash flow from operating activities.


Definitions:

Protonephridia

Protonephridia are excretory structures found in some invertebrates, such as flatworms, consisting of a network of dead-end tubules connected to external openings.

Flatworm

A group of simple, soft-bodied invertebrates that belong to the phylum Platyhelminthes, characterized by their flattened bodies and lack of specialized respiratory and circulatory systems.

Ammonia

A compound of nitrogen and hydrogen (NH3) that is a byproduct of the metabolism of animals and is used in various industrial processes.

Metanephridial Organs

Metanephridial organs are excretory structures in some invertebrates, including annelids, that filter fluid directly from the animal's body cavity.

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