Under the Direct Method of Determining Net Cash Provided by Operating

question 34

Multiple Choice

Under the direct method of determining net cash provided by operating activities on the statement of cash flows, a gain on the sale of plant assets would be:

• A) added to the amount of operating expenses reported under the accrual basis.
• B) deducted from the amount of operating expenses reported under the accrual basis.
• C) deducted from the amount of sales reported under the accrual basis.
• D) totally ignored since the gain is not a part of sales, cost of goods sold, or operating expenses.

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Definitions:

Cardiac

Relating to the heart and its functions in health and disease.

Osteoarthritis

A degenerative joint disease characterized by the breakdown and eventual loss of joint cartilage.

Muscle Fitness

A state of health and physical well-being in muscles characterized by strength, endurance, and flexibility.

Health Problems

Various medical conditions or diseases that can negatively affect an individual's physical or mental well-being.