When Preparing a Statement of Cash Flows Using the Indirect

question 48

Multiple Choice

When preparing a statement of cash flows using the indirect method,which of the following is correct?

• A)Proceeds from the sale of equipment should be added to net income in the operating activities section.
• B)A loss on the sale of land should be added to net income in the operating activities section.
• C)The declaration of a cash dividend should be a use of cash in the financing activities section.
• D)The issuance of a stock dividend should be a use of cash in the financing activities section.
• E)The purchase of land and a building by issuing a long-term note payable should be a source of cash in the financing activities section.

---

Definitions:

Frequency

The number of occurrences of a repeating event per unit of time, often used in the context of waves.

Wavelength

The distance between successive crests of a wave, especially in sound waves, light, or other electromagnetic radiation.

Frequency

The rate at which something occurs over a particular period of time, often used in the context of waves, sound, and electromagnetic radiation.

Wavelength

The distance between successive crests of a wave, especially points in a sound wave or electromagnetic wave.