For Each of the Following Items, Indicate by Using the Appropriate

question 135

Multiple Choice

For each of the following items, indicate by using the appropriate code letter, how the item should be reported in the statement of cash flows, using the indirect method.
-Loss on sale of land.

• A)Added to net income
• B)Deducted from net income
• C)Cash outflow--investing activity
• D)Cash inflow--investing activity
• E)Cash outflow--financing activity
• F)Cash inflow--financing activity
• G)significant noncash investing and financing activity

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Definitions:

Promisor

The individual or party that makes a promise or commitment in a contract.

Benefiting Party

Refers to the individual or entity who receives advantage or profit from a legal agreement or act.

Promised

A declaration or assurance that one will do a particular thing or that guarantees a certain outcome or condition.

Assignee

A person or entity to whom rights or interests are transferred by another, the assignor.