If a Gain of $81,000 Is Realized When Selling (For

question 75

Multiple Choice

If a gain of $81,000 is realized when selling (for cash) a building having a book value of $600,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is

• A)$519,000.
• B)$681,000.
• C)$600,000.
• D)$81,000.

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Definitions:

Economies of Scale

Advantages in costs that companies gain by operating at larger scales, resulting in lower cost per unit as the scale expands.

Product Innovation

The process of developing new products or improving existing ones to meet changing consumer needs and preferences.

Process Innovation

The implementation of new or significantly improved production or delivery methods, enhancing efficiency or quality in the manufacturing or service sectors.

Venture Capital

Financing provided by investors to startups and small businesses with long-term growth potential.