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:

Hurtful Message

A communication that is intended or perceived to cause emotional pain or distress to the recipient.

Threat

An indication or warning of probable trouble, harm, or danger to someone or something.

Hierarchical Structures

Refers to systems organized in a ranked order, often seen in organizations or biological classifications, where each level is above or below another.

Memories

Memories are the mental storage of past experiences, knowledge, and sensations, which are capable of influencing present behavior and attitudes.