Using the Direct Method of Preparing the Statement of Cash

question 152

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:

Population Ecology

A branch of biology that studies the dynamics of species populations and how these populations interact with the environment.

Necrosis

A form of cell injury which results in the premature death of cells in living tissue by autolysis.

Dissolution

The closing down or dismissal of an assembly, partnership, or official body, often referring to the legal termination of an organization’s existence.

Isomorphism

The process through which organizations in the same sector or field become increasingly similar in their structures, processes, and practices, often in response to regulatory, competitive, or cultural pressures.