When Calculating the Net Cash Provided by Operating Activities, a Gain

question 52

Multiple Choice

When calculating the net cash provided by operating activities, a gain on the sale of equipment should:

• A)not be used in the calculation.
• B)be added to the net income.
• C)be subtracted from the net income.
• D)be reported in the cash flows from financing activities section.

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Definitions:

Suggestion Involvement

The practice of engaging individuals in the process by inviting their suggestions, often to foster a sense of ownership and contribution.

Empowered Employees

Workers who are given authority, resources, and confidence to take initiative and make decisions within their roles.

Empowering

Providing individuals or groups with the autonomy, resources, and support required to make decisions and take actions independently.

Operational Costs

Expenses associated with the day-to-day functioning of a business or organization.