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Assume the Indirect Method Is Used to Compute Net Cash

question 121

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Assume the indirect method is used to compute net cash flows from operating activities.For this item extracted from the financial statements-Gain on Disposal of Equipment-indicate the effect on net income in arriving at net cash flows from operating activities by choosing one of the following:


Definitions:

Quantity

The amount or number of a material or immaterial good or service.

Units

Basic quantities considered as a standard of measurement for physical quantities.

Profit-Maximizing

The method used by a company to identify the pricing and production quantities that maximize its profits.

Price

Price is the amount of money required to purchase a good or service, determined by factors like supply, demand, and production costs.

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