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:

Basic Assumption

A fundamental belief or principle that is accepted as true without proof, often serving as the basis for further reasoning or behavior.

Attribution Theory

A psychological theory that explains how individuals infer the causes of their own and others' behavior.

Dispositional Nature

Refers to inherent personality traits and tendencies that influence an individual's behavior and reactions.

Task Difficulty

The level of challenge presented by a task, which can affect an individual's performance and motivation.