Cleveland Company paid cash to purchase equipment costing $957,600 this year. Also this year, the company sold for $196,000 cash, equipment that originally cost $644,000 five years ago. How should these transactions be listed in the statement of cash flows?
A. The purchases and the sales of equipment must be shown separately as a decrease to cash for $1,601,600 (purchase) and an increase of $196,000 (sale).
B. Braden can combine the transactions and show a decrease to cash for $761,600.
C. Braden can combine the transactions and show a decrease to cash for $313,600.
D. The purchases and the sales of equipment must be shown separately as a decrease to cash for $957,600 (purchase) and an increase of $196,000 (sale).
Answer: D
You might also like to view...
A questionnaire that asks respondents whether they "strongly agree," "somewhat agree," "somewhat disagree," or "strongly disagree" is most likely a(n) ________
A) unstructured questionnaire B) online questionnaire C) mail questionnaire D) moderately structured questionnaire E) completely structured questionnaire
Risk assessment and ongoing monitoring are elements that comprise the control structure of the Sarbanes-Oxley Act.
Answer the following statement true (T) or false (F)
According to generally accepted accounting principles, most expenditures for intangible assets acquired from others should be treated as revenue expenditures when incurred
Indicate whether the statement is true or false
Bliss Massage Therapy Center maintains a database of over 700 clients and sends each one a special discount offer in the month of his or her birthday. Managers hope that as existing customers use the discount, they will see an overall growth in sales. According to Igor Ansoff's Product-Market Matrix, this is an example of the ________ strategy.
A. market diversification B. market penetration C. market development D. product development E. product differentiation