Which of the Following Statements Is False Regarding How the Cash

question 142

Multiple Choice

Which of the following statements is false regarding how the cash flow effects of the changes in the Equipment and Accumulated Depreciation accounts would be reported on a statement of cash flows if the indirect method is used to prepare the Operating Activities section?

• A)Cash proceeds from the sale of the equipment would be reported as a cash inflow in the Investing Activities section.
• B)The cash paid to purchase equipment would be reported as a cash outflow in the Investing Activities section
• C)Depreciation expense would be added to net income in the Operating Activities section.
• D)A loss on the sale of the equipment would be subtracted from net income in the Operating Activities section

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Definitions:

Performance-to-Outcome Expectancy

is an individual's belief that performing a specific behavior will lead to a particular outcome.

Anticipated Satisfaction

The expected level of satisfaction an individual believes they will receive from a particular action or decision.

Comparison Other

Is the process of evaluating oneself by comparing with others, often used as a benchmark for self-assessment or self-improvement.

Expectancy Theory

is a psychological theory that suggests an individual's motivation is influenced by their expectation of the outcome and its value to them.