Using the Direct Method of Preparing the Statement of Cash

question 123

Multiple Choice

Using the direct method of preparing the statement of cash flows,to determine the cash effects of operating activities,a gain on the sale of equipment would be

• A)Added to operating expenses
• B)Deducted from payments for operating expenses
• C)Deducted from sales revenue
• D)Ignored because a gain is not a part of sales or operating expenses

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Definitions:

Circulatory System

The body's system responsible for the transport of blood, nutrients, waste products, and other substances, consisting of the heart, blood vessels, and blood.

Algae

A diverse group of photosynthetic organisms, mostly aquatic, that include seaweeds and many single-celled forms, contributing significantly to oxygen production and biogeochemical cycles.

Evolutionary History

The branch of biology that studies the origins and changes in the diversity of life over time.

Major Events

Significant occurrences or happenings, especially those that mark a particular period or are of historical importance.