Which of the Following Would Not Be Presented in the Cash

question 95

Multiple Choice

Which of the following would not be presented in the cash from operating activities section of the statement of cash flows when the indirect method is used?

• A) Gain on the sale of investments.
• B) Depreciation expense.
• C) Neither a gain on the sale of investments nor depreciation expense would be shown.
• D) Both a gain on the sale of investments and depreciation expense would be shown.

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Definitions:

Major Investment Decisions

Critical financial choices made by businesses regarding large-scale expenditures on assets or projects expected to generate long-term benefits.

Financial Forecasts

Estimates or predictions about future financial performance, including revenue, expenses, cash flow, and economic conditions impacting a business.

Planning And Preparing Tax

The process of strategizing and compiling all necessary documents and information for accurate tax filing and compliance.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations to finance their immediate operational needs.