A Building with a Book Value of $54,000 Is Sold

question 70

Multiple Choice

A building with a book value of $54,000 is sold for $63,000 cash. Using the indirect method, this transaction should be shown on the statement of cash flows as an increase of

• A) $54,000 from investing activities
• B) $63,000 from investing activities and a deduction from net income of $9,000
• C) $9,000 from investing activities
• D) $54,000 from investing activities and an addition to net income of $9,000

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Definitions:

Organizational Culture

The shared values, beliefs, and practices that characterize an organization and influence its members' behavior.

Routine Means

Conventional or established methods of accomplishing tasks or procedures.

Organizational Structure

The system of tasks, workflows, reporting relationships, and communication channels that coordinate the efforts of an organization's members.

Organizational Culture

The shared values, beliefs, and norms that shape the social and psychological environment of a business.