When the Net Cash Provided by Operating Activities Is Determined,a

question 29

Multiple Choice

When the net cash provided by operating activities is determined,a gain on a sale of equipment should

• A) be added to the net income.
• B) be subtracted from the net income.
• C) not be used in the calculation.
• D) be reported in the cash flows from financing activities section.

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Definitions:

French-Based Code Law

A legal system based on comprehensive written statutes and codes as a primary source of law, in contrast to common law systems; it is derived from the Napoleonic Code.

Merchant

An individual or company engaged in the buying and selling of goods for profit.

Buyer

An individual or entity that purchases goods or services from another party.

Ownership Rights

Legal rights that confer the ability to use, control, and dispose of property or assets.