Assume the direct method is used to compute net cash flows from operating activities.For this item extracted from the financial statements-Gain on Sale of Investment-indicate the effect on cash flows from operating activities by choosing one of the following:
A) Gain on sale is added to other cash flows to arrive at net cash from operating activities.
B) Gain on sale is subtracted from other cash flows to arrive at net cash from operating activities.
C) Gain on sale is not used to arrive at net cash from operating activities.
Correct Answer:
Verified
Q22: Which of the following items would not
Q23: Using the direct method,calculate the amount of
Q24: Assume the direct method is used to
Q25: Assume that the balance of accounts payable
Q26: Assume the direct method is used to
Q27: When a statement of cash flows is
Q29: Using the direct method,calculate the amount of
Q30: The direct method of preparing a statement
Q32: On a statement of cash flows prepared
Q128: How is it possible for a company
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents