A Loss on the Sale of Machinery in the Ordinary

question 18

Multiple Choice

A loss on the sale of machinery in the ordinary course of business should be presented in a statement of cash flows (indirect method) as

• A) an addition to net income.
• B) a deduction from net income.
• C) an inflow and outflow of cash.
• D) an outflow of cash.

---

Definitions:

Clairvoyants

are individuals who claim to have the ability to gain information about an object, person, location, or physical event through extrasensory perception.

Telepaths

Individuals who are believed or claimed to be able to communicate with others through telepathy, the direct transmission of thought from one mind to another.

Research Psychologists

Professionals who study cognitive, emotional, and social processes by observing, interpreting, and recording how individuals relate to one another and their environments.

ESP

Extra-sensory perception, the claimed ability to obtain information without the use of known sensory mechanisms.