Question
Entity L reported net income of $125,000 for the current year and uses the indirect method to report operating activities cash flow. Entity L reported
Entity L reported net income of $125,000 for the current year and uses the indirect method to report operating activities cash flow. Entity L reported a loss on sale of used equipment of $40,000. Choose the appropriate category on the statement of cash flows to report the loss.
Entity L reported net income of $125,000 for the current year and uses the indirect method to report operating activities cash flow. Entity L reported a loss on sale of used equipment of $40,000. Choose the appropriate category on the statement of cash flows to report the loss.
a. Cash Flows From Operating Activities-Add to Net Income
b. Cash Flows From Operating Activities-Deduct from Net Income
c. Cash Flows From Investing Activities
d. Cash Flows From Financing Activities
e. Non-cash
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Corporate Risk Management
Authors: Faisal F. Al-Thani, Tony Merna
2nd Edition
0470518332, 978-0470518335
