Under the Indirect Method of Preparing the Statement of Cash

question 101

Multiple Choice

Under the indirect method of preparing the statement of cash flows,a gain on the sale of equipment is:

• A)subtracted from net income in the operating activities section.
• B)added to net income in the operating activities section.
• C)subtracted from the book value of the equipment in the financing activities section.
• D)ignored since this transaction does not affect cash.

Understand the sources and processes of aquifer recharge.

Identify the distribution of freshwater and saltwater on Earth.

Recognize the environmental impact of human constructions on waterborne diseases.

Comprehend the methods and principles of groundwater replenishment.

---

Definitions:

Assignee

The party who receives rights or interests in a contract from the assignor.

Holder

An individual or entity that legally possesses a negotiable instrument, such as a check or promissory note, and has the right to enforce its terms.

Certificate Of Deposit

A savings certificate with a fixed maturity date and specified fixed interest rate, issued by banks to individuals investing money for a period.

Principle Plus Interest

The total amount owed or invested, composed of the original sum (principal) and the earnings on that sum (interest).