Assume the Indirect Method Is Used to Compute Net Cash

question 121

Multiple Choice

Assume the indirect method is used to compute net cash flows from operating activities.For this item extracted from the financial statements-Gain on Disposal of Equipment-indicate the effect on net income in arriving at net cash flows from operating activities by choosing one of the following:

• A) Add to net income to arrive at net cash flows from operating activities
• B) Subtract from net income to arrive at net cash flows from operating activities
• C) Not used to adjust net income to calculate net cash flows from operating activities

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Definitions:

Objective Fact

Information verified to be true by empirical evidence, unaffected by feelings or opinions.

Deviance Perspective

A sociological approach emphasizing how societal norms and powers influence what is considered deviant.

Sociologists Bias

The potential influences or prejudices that sociologists may bring to their research or interpretations.

Deviant Behavior

Actions or behaviors that violate societal norms and expectations, often eliciting negative social reactions.