If an Entity Both Sells Capital Assets and Purchases Capital

question 21

True/False

If an entity both sells capital assets and purchases capital assets during the year, only the net cash inflow or outflow will be reported in the investing section of the cash flow statement.

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Definitions:

Demand for Labor

The total amount of workers that employers are willing and able to hire at a given wage rate in a certain period.

Union Membership

The state of being a member of a labor union, which is an organization that represents the collective interests of workers in negotiations with employers.

Manufacturing

The process of converting raw materials or components into finished goods through the use of tools, human labor, machinery, and chemical processing.

Right-to-Work Laws

Under the Taft-Hartley Act, states are permitted to pass these laws, which prohibit the union shop. (Union membership cannot be made a condition of securing employment.)