The Sonesta Company Uses the Indirect Method for the Statement

question 14

Multiple Choice

The Sonesta Company uses the indirect method for the statement of cash flows. In 2013, they sold equipment for $4,800 cash. The net book value of the asset prior to sale was $4,000. Which of the following statements is true?

• A) The gain on sale of $800 would be added back to net income in the operating activities section.
• B) The book value of the assets sold would be shown as a negative cash flow in the investing activities section.
• C) The cash receipt of $4,800 would be shown as a positive cash flow in the investing activities section.
• D) The gain on sale of $800 would be shown as a positive cash flow in the financing activities section.

Identify benefits of utilizing group technology and environmental teams in product design.

Understand the basic principles of the dividend growth model and how it is used to calculate stock prices.

Recognize the relationship between dividend yield, capital gains yield, and total rate of return on stocks.

Comprehend the effect of changes in dividends, growth rates, and required returns on stock values.

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Definitions:

MMPI

The Minnesota Multiphasic Personality Inventory, a comprehensive psychological test designed to assess a variety of personality traits and psychopathologies.

Naturalistic Observations

A research method in which subjects are observed in their natural environment without any manipulation by the observer.

Mental Representations

Mental representations are the cognitive structures in our minds that stand in for objects, events, or concepts, allowing us to understand and interact with the world around us.

Self-efficacy

An individual's belief in their own capacity to execute behaviors necessary to produce specific performance attainments.