When a Long-Lived Asset Is Sold, Only the Proceeds from the Sale

question 112

True/False

When a long-lived asset is sold, only the proceeds from the sale of the asset are reported in the investing activities.

Grasp the concept of Allowance for Doubtful Accounts and its role in adjusting entries.

Analyze the aging method for estimating uncollectible receivables.

Calculate interest on interest-bearing notes and understand the treatment of dishonored notes.

Understand the calculation of note maturity dates and the role of the maker in promissory notes.

---

Definitions:

Pretax Return

The profit earned by a business before the deduction of tax expenses.

Net Present Value

A financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Net Present Value

A calculation that determines the present value of a series of future cash flows, minus the initial investment, used to assess the profitability of investments.

Investment Proposal

A detailed document or presentation by a company or individual seeking to raise capital, outlining the nature of the project, the required investment, and the expected returns.