Using the Indirect Method of Preparing a Statement of Cash

question 73

Multiple Choice

Using the indirect method of preparing a statement of cash flows,a loss on the sale of a capital asset is:

• A) ignored
• B) added in the operating activities section
• C) added in the investing activities section
• D) subtracted in the operating activities section

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Definitions:

GEO

Commonly used as an abbreviation for geographical, related to the physical characteristics of the earth or the distribution of objects, people, or phenomena on Earth.

LEO

Low Earth Orbit, the region of space around the Earth at altitudes between approximately 160 to 2,000 kilometers.

MEO

Medium Earth Orbit, a type of orbit for satellites that is located approximately 2,000-35,786 kilometers above the Earth's surface.

GEO

An abbreviation for Geostationary Orbit, a circular orbit 35,786 kilometers above the Earth's equator and following the direction of the Earth's rotation.