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:

Reverse Discrimination

The act of giving preference to members of a group historically discriminated against, potentially leading to unfair treatment of other groups.

Tokenism

The practice of making only a perfunctory or symbolic effort to be inclusive to members of minority groups, especially by recruiting a small number of people from underrepresented groups in order to give the appearance of equality.

Minority Group

A sociological term referring to a category of people differentiated from the social majority, often marked by differences in race, ethnicity, culture, or sexual orientation.

Refugees

Individuals who flee their country due to fear of persecution, conflict, violence, or other circumstances that seriously disturb public order and require international protection.