In a Statement of Cash Flows, If Equipment Is Sold

question 9

Multiple Choice

In a statement of cash flows, if equipment is sold at a gain, the amount shown as a cash inflow from investing activities equals the carrying amount of the equipment

• A) with no addition or subtraction.
• B) plus the gain and less the amount of tax attributable to the gain.
• C) plus both the gain and the amount of tax attributable to the gain.
• D) plus the gain only.

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Definitions:

Independent Companies

Businesses that operate on their own, without being controlled by or affiliated with a larger conglomerate or parent company.

Expatriates

Individuals who live and work outside their native country, often for a specified period and for professional reasons.

International Assignments

Employment tasks or roles that require an individual to live and work in a foreign country, typically for an extended period.

Multidomestic Corporation

A company that operates in multiple countries, adapting its products and services to each local market.