Under the Indirect Method,when Machinery Is Sold at a Gain,the

question 82

True/False

Under the indirect method,when machinery is sold at a gain,the gain is added in the operating section of the statement of cash flows and the cost is added in the investing section.

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Definitions:

Nonparticipating

A term used to describe policies or investments that do not share in the profits or surplus of a company, such as nonparticipating life insurance policies that do not pay dividends.

Non-cumulative

Refers to types of shares or dividends that do not accumulate or carry over unpaid dividends into future periods.

Non-cumulative

Describes preferred stocks where dividends not declared in a given period do not accumulate and are not required to be paid in the future.

Nonparticipating

In insurance, refers to a policy that does not entitle the policyholder to share in the surplus profits of the insurer.