If a Loss of $30,000 Is Incurred in Selling (For

question 158

Multiple Choice

If a loss of $30,000 is incurred in selling (for cash) office equipment having a book value of $120,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is

• A) $90,000.
• B) $120,000.
• C) $150,000.
• D) $30,000.

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Definitions:

Investment

Positioning resources, particularly money, with the expectation of accruing income or a profit.

Capital Gains

The profit achieved from the sale of an asset, like stocks or real estate, where the sale price exceeds the purchase price.

Stock Market

A collection of markets where stocks (shares of ownership in businesses) are bought, sold, and issued, reflecting the economic trends of a country or the world.

Investor

An individual or entity that allocates capital with the expectation of receiving financial returns.