When Using the Indirect Method to Complete the Cash Flows

question 51

Multiple Choice

When using the indirect method to complete the cash flows from operating activities section of the statement of cash flows,what is the proper disposition of a loss on disposal of equipment?

• A)Disregard the loss because it relates to an investing activity.
• B)Disregard the loss because it relates to a financing activity.
• C)Add the loss to net income.
• D)Subtract the loss from net income.

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Definitions:

Social Dominance Orientation

A personality trait which predicts social and political attitudes, characterized by a preference for hierarchy in social settings and dominance over lower status groups.

Right-Wing Authoritarianism

A personality and ideological framework characterized by a high degree of submission to authorities, aggression toward outgroups, and a rigid adherence to conventional norms.

Preemptive Bombing

A military strategy involving an attack made on the presumption that an enemy is planning an imminent attack, intended to neutralize the perceived threat.

Conservative American College Students

Refers to students enrolled in American colleges who hold conservative values and beliefs politically and socially.