Using the Indirect Method of Preparing a Statement of Cash

question 73

Multiple Choice

Using the indirect method of preparing a statement of cash flows,a loss on the sale of a capital asset is:

• A) ignored
• B) added in the operating activities section
• C) added in the investing activities section
• D) subtracted in the operating activities section

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Definitions:

Divergent Thinking

A thought process that allows us to expand our view of the world to generate as many ideas as possible without being trapped by traditional problem-solving methods or predetermined constraints.

Practical Ideas

Concepts or solutions that can be implemented effectively and have potential for real-world application.

Human-Centered Design

A design approach that prioritizes the needs, wants, and limitations of the end-user at every stage of the design process.

Human Needs

Fundamental requirements that people need to survive and thrive, including physiological needs, safety, love, and esteem.