A Corporation Uses the Indirect Method for Preparing the Statement

question 69

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:

Meritorious Behavior

Actions or conduct deserving praise and reward, often associated with high standards of performance or ethics.

Material Reward

Tangible incentives such as money, bonuses, or gifts given to employees as recognition for their work or achievements.

Expectancy Theory

A psychological theory that explains motivation as a function of an individual's expectation that effort will lead to high performance and high performance will lead to desired outcomes.

Task

A specific piece of work or duty assigned to someone as part of a job or course of study.