A Company Uses the Indirect Method to Prepare the Statement

question 26

Multiple Choice

A company uses the indirect method to prepare the statement of cash flows. How will a loss from the sale of a building be presented on the statement?

• A)A loss from the sale of a building can be an addition in the investing activities section.
• B)A loss from the sale of a building can be added to net income in the operating activities section.
• C)A loss from the sale of a building can be deducted from net income in the operating activities section.
• D)A loss from the sale of a building can be a deduction in the financing activities section.

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Definitions:

Situational Timing

The identification of the most appropriate or opportune moment to take action within a specific context.

Prejudice

Preconceived opinion or judgment towards people, groups, or subjects, often based on stereotypes and without factual justification.

Jealousy

A complex emotion that arises when a person perceives a threat to a valued relationship or possession, often leading to feelings of insecurity or fear of loss.

Active Listening

Listening with greater concentration, less tolerance for distractions, and more feedback to the speaker.