Questions: Question 24 The direct and indirect methods results in identical amounts for net cash provided or used by operating activities. True. False. Question 25 The sale of equipment would be reported in the activities section of the statement of cash flows. operating. owner's. financing. investing.

The answer is True.

The direct and indirect methods result in identical amounts for net cash provided or used by operating activities. The difference between the two methods lies in how the cash flows from operating activities are presented. The direct method lists specific cash inflows and outflows, while the indirect method starts with net income and adjusts for changes in balance sheet accounts to convert accrual-based net income to cash-based net income. However, both methods ultimately arrive at the same total for net cash provided or used by operating activities.

The answer is investing.

Operating activities include the primary revenue-generating activities of the business, such as cash receipts from sales of goods and services and cash payments to suppliers and employees. The sale of equipment is not part of the core operating activities.

There is no "owner's" activities section in the statement of cash flows. This option is not applicable.

Financing activities include transactions involving debt, equity, and dividends. These activities relate to how the business is funded, such as issuing shares or borrowing money. The sale of equipment does not fall under financing activities.

Investing activities include the purchase and sale of long-term assets and other investments. The sale of equipment is considered an investing activity because it involves the disposal of a long-term asset.