Productivity Enterprises Uses the Direct Method When Preparing Its Statement

question 97

Multiple Choice

Productivity Enterprises uses the direct method when preparing its statement of cash flows. Productivity sold equipment with a book value of $9,000 at a loss of $1,500. The amount to be reported on the statement of cash flows in the operating activities section is:

• A)$7,500.
• B)$10,500.
• C)$1,500.
• D)$0.

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