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.


C

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The market risk premium represents the expected difference between:

A) the return on AAA bonds and Treasury bonds. B) the prime rate and the 3-month Treasury bill rate. C) the return on the stock market and the return on preferred shares. D) the return on the stock market investment and the risk-free return.

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The yield curve depicts the relationship between a bond's yield to maturity and its

A) duration. B) term to call. C) term to maturity. D) volatility.

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If one of two identical relational tables has the last column row moved to the first place, those two relational tables are no longer identical

Indicate whether the statement is true or false

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An example of ________ prototyping is building a full-scale model of an automobile that is used in wind tunnel tests

A) first-of-series B) patched-up C) nonoperational D) selected features

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