If an asset is sold at a gain, why is the gain deducted from net income when computing the net cash flows from operating activities under the indirect method?
The gain is deducted from net income to avoid double counting, since the entire proceeds from the sale will appear as a cash inflow from investing activities.
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A pedestrian trips and falls on a poorly lit sidewalk in front of Kate Geller's house and is injured. If the pedestrian sues for damages, which of the following parties would most likely be liable to pay the damages?
A. the civic authority B. Kate Geller C. the residents' association of the locality D. the pedestrian
Which of the following statements about the sale of property and liability insurance through the direct response system is (are) true?
I. Selling expenses are higher because market segmentation tends to be less precise than with other marketing methods. II. It is the most appropriate system for selling complex products. A) I only B) II only C) both I and II D) neither I nor II
Can a standard issued by the Secretary of Labor displace the statutory general duty standard?
The option of sticking with the current business lineup makes sense when ______.
A. the company's present businesses offer attractive growth opportunities and can be counted on to create economic value for shareholders. B. companies are seeking multinational diversification. C. corporate executives are excited about market opportunities. D. corporate executives are satisfied with current performance of each of their businesses and can use redirect capabilities and resources for expansion opportunities E. corporate executives want to divest some businesses and retrench to a narrower diversification base