Hubble Corporation, Which Uses the Indirect Method to Prepare Its

question 50

Multiple Choice

Hubble Corporation, which uses the indirect method to prepare its statement of cash flows, sold used equipment for cash. Which statement regarding this sale is TRUE?

• A)The cash from operating activities will be greater if the direct method is used to prepare the statement of cash flows.
• B)The effect on cash from operating activities depends on whether there was a gain or loss on sale.
• C)The cash from operating activities will be less if the direct, rather than indirect, method is used to prepare the statement of cash flows.
• D)The cash from operating activities will not be reported if the indirect method is used to prepare the statement of cash flows.

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Definitions:

Ophthalmologist

A medical or osteopathic doctor specialized in eye and vision care, including diagnosis, treatment, and surgery of eye diseases.

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Movement that occurs without conscious control, often reflexive or automatic in nature.

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External or internal factors that cause discomfort or distress, prompting a physiological or psychological pain response.

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The act or process of receiving or being received, often referring to the area in hospitals or offices where guests are greeted.