On the statement of cash flows prepared using the indirect method, a $7,500 gain on the sale of fixed assets would be O a. deducted from dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends O b. deducted from net income in converting the net income reported on the income statement to cash flows from operating activities O C. added to net income in converting the net income reported on the income statement to cash flows from operating activities O d. added to dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
On the statement of cash flows prepared using the indirect method, a $7,500 gain on the sale of fixed assets would be
O a. deducted from dividends declared in converting the dividends declared to the cash flows from financing activities related
to dividends
O b. deducted from net income in converting the net income reported on the income statement to cash flows from operating
activities
OC. added to net income in converting the net income reported on the income statement to cash flows from operating
activities
O d. added to dividends declared in converting the dividends declared to the cash flows from financing activities related to
dividends
Transcribed Image Text:On the statement of cash flows prepared using the indirect method, a $7,500 gain on the sale of fixed assets would be O a. deducted from dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends O b. deducted from net income in converting the net income reported on the income statement to cash flows from operating activities OC. added to net income in converting the net income reported on the income statement to cash flows from operating activities O d. added to dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Cash Flow Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education