When Preparing the Note Attached to the Cash Flow Statement

question 3

Multiple Choice

When preparing the note attached to the cash flow statement reconciling profit and cash flow from operations, proceeds from the disposal of non-current assets are:

• A) added back to the profit.
• B) sometimes added back to the profit and sometimes subtracted from the profit depending on whether a loss or profit on disposal is incurred.
• C) subtracted from the profit.
• D) do not appear in the reconciliation.

---

Definitions:

Punishment

A consequence that reduces the likelihood of a behavior occurring in the future, often used in behavior modification strategies.

Positive Reinforcement

A behavioral technique involving the addition of a favorable stimulus following a desired behavior to increase the likelihood of it being repeated.

John Lewis

An American civil rights leader and politician known for his work in voter registration drives, the Civil Rights Movement, and as a U.S. Representative.

CIO

Congress of Industrial Organizations, a federation of unions that organized workers in industrial unions in the United States and Canada from 1935 until its merger with the AFL in 1955, becoming AFL-CIO.