A Corporation Uses the Indirect Method for Preparing the Statement

question 7

Multiple Choice

A corporation uses the indirect method for preparing the statement of cash flows. A fixed asset has been sold for $25,000 representing a gain of $4,500. The value in the operating activities section regarding this event would be

• A) $25,000
• B) $(4,500)
• C) $29,500
• D) $4,500

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Definitions:

Dollar Diplomacy

A foreign policy strategy used by the United States, particularly during the early 20th century, emphasizing the use of economic power and investment to further its interests abroad.

Japanese Influence

The impact or effect that Japanese culture, technology, or policy has on other countries or areas of activity.

President Taft

William Howard Taft, the 27th President of the United States (1909-1913), known for his focus on constitutional law and his later service as Chief Justice of the Supreme Court.

Rock Springs Massacre

A violent racial conflict that occurred in 1885 in Rock Springs, Wyoming, where white coal miners killed numerous Chinese miners, highlighting racial tensions in the American West.