A Loss on the Disposal of a Non-Current Asset

question 29

Multiple Choice

A loss on the disposal of a non-current asset:

• A) Involves cash inflows.
• B) Involves cash outflows.
• C) Does not reflect any cash flow and is the result of an investing activity.
• D) Does not reflect any cash flow.
• E) Is the result of an investing activity.

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Definitions:

Time Instrument

A document promising payment of a certain amount of money at a fixed or determinable future time, such as a promissory note or check.

Payment

The transfer of money or goods from one party to another as compensation for goods, services, or to fulfill a legal obligation.

Check Clearing

The process by which banks exchange checks and settle funds, ensuring that the amount specified on the check is transferred from the payer's account to the payee's account.

Bank Time

A policy where employees can accumulate hours of work time to use at a later date, often for leave purposes.