GRI Performance Enterprises Uses the Direct Method When Preparing Its

question 131

Multiple Choice

GRI Performance Enterprises uses the direct method when preparing its statement of cash flows.GRI Performance sold equipment with a book value of $8,000 at a gain of $2,500.The amount to be reported on the statement of cash flows in the operating activities section is:

• A) $0
• B) ($2,500)
• C) $2,500
• D) $10,500

---

Definitions:

Intravenous Antibiotic

Antibacterial medication administered directly into the vein for faster and more direct absorption in the treatment of infections.

Respirations

The act of breathing; involves inhaling oxygen and exhaling carbon dioxide.

Immunosuppression

The reduced ability of the immune system to fight infections and other diseases, which can be induced intentionally (e.g., for organ transplant patients) or caused by certain conditions.

Kidney Transplant

A surgical procedure to place a healthy kidney from a donor into a person whose kidneys no longer function properly.