Under the Indirect Method, When Calculating Cash Flows from Operating

question 42

Multiple Choice

Under the indirect method, when calculating cash flows from operating activities, a gain on the sale of equipment is:

• A) subtracted from net income.
• B) added to net income.
• C) only the proceeds are added to net income.
• D) ignored since this transaction does not affect cash.

---

Definitions:

Humor

The quality of being amusing or entertaining, often involving the recognition of incongruity or the ability to provoke laughter.

External Locus

External locus of control refers to the belief that one's life events are largely controlled by external forces or other people rather than one's own efforts.

Life Expectancy

The average period that a person may expect to live, based on statistical averages.

Mindfulness Meditation

A practice of mindfulness involving focusing the mind on the present moment without judgment, often used as a stress reduction technique.