When Preparing a Statement of Cash Flows on the Indirect

question 116

Multiple Choice

When preparing a statement of cash flows on the indirect method,which of the following is correct?

• A)Proceeds from the sale of equipment should be added to net income in the operating activities section.
• B)A loss on the sale of land should be added to net income in the operating activities section.
• C)The declaration of a cash dividend should be a use of cash in the financing activities section.
• D)The issuance of a stock dividend should be a use of cash in the financing activities section.
• E)The purchase of land and a building by issuing a long-term note payable should be a source of cash in the financing activities section.

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Definitions:

Probability

The likelihood or chance that a particular event will occur, often expressed as a number between 0 and 1.

Probability of Success

The likelihood of achieving a favorable outcome in a given trial or experiment.

Binomial Random Variable

A type of random variable that takes on one of two possible outcomes with certain probabilities, typically used in binomial distributions.

Final Exam Week

The last period in an academic term during which final exams are administered across various courses, typically a significant determinant of final grades.