A Corporation Uses the Indirect Method for Preparing the Statement

question 7

Multiple Choice

A corporation uses the indirect method for preparing the statement of cash flows. A fixed asset has been sold for $25,000 representing a gain of $4,500. The value in the operating activities section regarding this event would be

• A) $25,000
• B) $(4,500)
• C) $29,500
• D) $4,500

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Definitions:

Capital Pooling

The practice of collecting funds from multiple investors to invest in projects too large or risky for a single investor to undertake alone.

Manufacturing Regions

Areas specifically known for their high concentration of industrial activity, often characterized by the presence of factories, production facilities, and labor resources focused on manufacturing goods.

Northern Europe

A geographical region in Europe, typically including countries such as Denmark, Finland, Iceland, Norway, Sweden, and sometimes the British Isles, known for its cold climate and advanced social welfare systems.

Coal Deposits

Geological formations containing coal in significant quantities, which can be mined for fuel and other uses.