A Gain on the Sale of Long-Term Assets Is Added

question 5

True/False

A gain on the sale of long-term assets is added to net income to arrive at net cash flows from operating activities under the indirect method.

---

Definitions:

Revenues

The complete revenue accrued from the core business activities through selling goods or services.

Secondary Operations

Processes that are performed after the primary manufacturing or production process to add value to a product, such as finishing, painting, or assembly.

Periodic Inventory System

An inventory accounting system where stock levels and cost of goods sold are determined at the end of an accounting period through a physical count.

Inventory Record

Documentation that tracks the quantity, location, and status of products throughout the supply chain from acquisition to sale.