Identify the Section of the Statement of Cash Flows (A-D)

question 90

Multiple Choice

Identify the section of the statement of cash flows (a-d) where each of the following items would be reported.
-Sale of machinery held for use by the company

• A)Operating activities
• B)Financing activities
• C)Investing activities
• D)Schedule of noncash financing and investing

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Definitions:

Principal

The main party to a transaction, such as a borrower in a loan agreement or a buyer in a sales contract.

Contract

An enforceable pact by law that involves two or more individuals or groups.

Legal Capacity

The capability recognized by law for a person to act in a particular role or enter into a contract, often related to age and mental soundness.

Express Authority

The power granted to an agent or representative explicitly stated by the principal in a written or oral form.