In Computing the Cash Flows from Operating Activities Section, a Loss

question 139

True/False

In computing the cash flows from operating activities section, a loss from the sale of long-term assets must be deducted from net income.

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Definitions:

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as part of retirement planning.

RRSP

Registered Retirement Savings Plan, a Canadian account for holding savings and investment assets, intended to support retirement.

Quarterly

Occurring or done every three months.

Compounded

A method of calculating interest where previously earned interest is added to the principal amount, and then future interest is calculated on the new total.