Asked by
jamal kamara
on Nov 13, 2024
Verified
If a gain of $11,000 is realized in selling (for cash) office equipment having a book value of $55,000, the total amount reported in the Cash flows from investing activities section of the statement of cash flows is
A) $44,000
B) $11,000
C) $55,000
D) $66,000
Book Value
The net value of a company's assets as reported on the balance sheet, calculated as total assets minus total liabilities and intangible assets not readily marketable.
Office Equipment
Tangible property such as desks, chairs, and computers used in the daily operations of an office.
Cash Flows
The movement of money into and out of a business or financial entity, often analyzed to assess financial health.
- Identify the classification of transactions in the statement of cash flows such as operating, investing, and financing activities.
- Understand the impact of non-operating items (like gains or losses) on the calculation of net cash flow.
Verified Answer
SS
Learning Objectives
- Identify the classification of transactions in the statement of cash flows such as operating, investing, and financing activities.
- Understand the impact of non-operating items (like gains or losses) on the calculation of net cash flow.