In Calculating Cash Flows from Operating Activities Using the Indirect

question 2

Multiple Choice

In calculating cash flows from operating activities using the indirect method, a gain on the sale of equipment is

• A) added to net income
• B) deducted from net income
• C) ignored because it does not affect cash
• D) reported supplementally as a noncash investing and financing activity

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Definitions:

Marine Environments

Ecosystems found in the ocean, ranging from deep sea to coastal areas, supporting a wide range of life forms.

Corals

Marine invertebrates in the class Anthozoa of phylum Cnidaria, typically living in compact colonies of many identical individual polyps that build up coral reefs, important for marine biodiversity.

Reefs

Marine structures composed mainly of coral and other biogenic material, typically forming in shallow, warm water environments.

Quartz-Rich

Containing a high concentration of quartz, a hard, crystalline mineral composed of silicon and oxygen atoms.