When Preparing the Operating Activities Section of the Statement of Cash

question 198

True/False

When preparing the operating activities section of the statement of cash flows using the indirect method, non-operating gains are added to net income.

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Definitions:

Mission-Related

Pertaining to activities, decisions, or initiatives that directly align with and support an organization's core purpose or objectives.

Earned Income

Revenue generated from the sale of goods or services, as opposed to donations or grants, especially in the context of nonprofit organizations.

Cause Marketing

A type of corporate social responsibility in which a company's promotional campaign has the dual purpose of increasing profitability while bettering society.

Licensing Agreement

A legal contract between two parties, where one party gives the other permission to use its brand, patent, or proprietary information under agreed terms.