When Preparing the Financial Statements for 2021, Marc Martin, CFO

question 56

Multiple Choice

When preparing the financial statements for 2021, Marc Martin, CFO for Maverick Mania Inc., noticed that during the year the company sold equipment with an original cost of $ 50,000 for cash proceeds of $ 18,000. At the time of the sale, the equipment had a carrying amount of $ 20,000. Maverick Mania uses the direct method to prepare its cash flow statement. On the 2021 cash flow statement, the company should report

• A) cash proceeds from investing activities, $ 20,000.
• B) cash proceeds from operating activities, $ 18,000.
• C) cash proceeds from investing activities, $ 18,000.
• D) cash proceeds from operating activities, $ 20,000.

---

Definitions:

Rapid Onset

Describes a condition or symptom that develops suddenly and grows intense in a very short period.

Nonpharmacological Interventions

Treatment methods other than medications used to alleviate symptoms, often including physical therapy, psychological strategies, or alternative therapies.

Visible Signs

Observable indicators or symptoms that can be seen on a patient's body, often used in the context of diagnosis or monitoring.

Tumor Recurrence

The return of a tumor after treatment and a period of improvement.