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:

Conformity

Describes the act of matching attitudes, beliefs, and behaviors to group norms, policies, or societal expectations.

Group Survival

The ability of a collective to endure or overcome challenges and threats together, ensuring the longevity and stability of the group.

Embarrassing Interpersonal Problems

Refers to issues or conflicts that arise in personal interactions, which are awkward or difficult to manage and resolve.

Self-Censorship

The act of censoring or withholding one's opinions or information from others due to fear of social or official reprisal.