A Company Uses the Indirect Method to Prepare the Statement

question 124

Multiple Choice

A company uses the indirect method to prepare the statement of cash flows, how will a gain from the sale of equipment be presented on the statement of cash flows?

• A)A gain from the sale of equipment will be added to net income in the operating activities section on the statement of cash flows.
• B)A gain from the sale of equipment will be an addition in the financing activities section on the statement of cash flows.
• C)A gain from the sale of equipment will be deducted from net income in the operating activities section on the statement of cash flows.
• D)A gain from the sale of equipment will be an addition in the investing activities section on the statement of cash flows.

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Definitions:

Free Will

The ability of individuals to make choices that are not determined by prior causes or by divine intervention.

Deviance

Actions or behaviors that violate societal norms or expectations, potentially leading to negative societal reactions.

Positivist

Relating to a philosophical approach that emphasizes empirical and scientific evidence to understand and explain phenomena.

Constructionist Perspectives

A theoretical viewpoint that emphasizes the socially constructed nature of reality, suggesting that our understanding of the world is shaped through social interactions and cultural norms.