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

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Definitions:

Population Parameter

A numerical characteristic or measure that describes an aspect of a population, such as its mean or variance.

Sampling Distribution

The distribution of probabilities for a certain statistic, obtained from a random sample.

Sample Statistic

A numerical measure that describes an aspect of a sample of a population.

Probability Samples

Samples chosen in such a way that every member of the population has a known, non-zero chance of being included.