When a company sells a long-lived asset, stockholders' equity will change by the:
A. difference between the sales price and the asset's book value.
B. amount of the sale.
C. amount of the asset's book value.
D. amount of the asset's Accumulated Depreciation.
Answer: A
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Under free trade, Canada would not enjoy any gains from trade with Sweden if Canada
a. trades at the Canadian rate of transformation. b. trades at Sweden's rate of transformation. c. specializes completely in the production of its export good. d. specializes partially in the production of its export good.
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An electrical power system consists of three major components with reliabilities of 0.99, 0.94, and 0.90. In order to improve the reliability, a backup component of reliability 0.90 is added to Component 3. Compute and indicate the composite reliability of Component 3.
a. 0.93 b. 0.92 c. 0.99 d. 0.92
Martin Ceramics Company sold equipment for cash. The income statement shows a gain on the sale of $1,020. The net book value of the asset was $3,810. Which of the following statements describes the cash effect of the transaction?
A) negative cash flow of $4,830 for financing activities B) negative cash flow of $2,790 for operating activities C) positive cash flow of $4,830 from investing activities D) positive cash flow of $2,790 from investing activities