Wgu C213 Accounting For Decision Makers Study Guide Graded A+

A loss on the sale of machinery in the ordinary course of business should be presented in a statement of cash flows (indirect method) as a. an inflow and outflow of cash. b. a deduction from net income. c. an outflow of cash. d. an addition to net income. {Ans: d. an addition to net income.}Management {Ans: Which of the following is NOT an external user of financial information?}Conservatism {Ans: the practice of recognizing all losses but not recognizing gains until they are certain}The balance sheet, the income statement, and the statement of cashflows {Ans: What are the three primary financial statements?}Equipment {Ans: Which of the following accounts would NOT be considered a current asset?}Which of the following principles best describes the rationale for matching administrative and selling expenses with revenues of the current period? {Ans: Immediate recognition}