Nelson Company Collected the Following Data in Its Accounting Records

question 93

Multiple Choice

Nelson Company collected the following data in its accounting records in 20X7: $\begin{array}{|l|r|}\hline \text { Income Statement } & \\\hline \text { Depreciation expense } & \$ 1,000 \\\text { Loss on sale of equipment } & \$ 3,000\\\hline \\\hline \text { Statement of Financial Position } & \\ \hline \text { Beginning balance - equipment } & \$ 12,500 \\\hline \text { Ending balance - equipment } & \$ 8,000 \\\hline \text { Beginning balance - accumulated depreciation } & \$ 2,000 \\\hline \text { Ending balance - accumulated depreciation } & \$ 2,400 \\\hline\end{array}$
No new equipment was purchased during the year. What was the cash inflow from the sale of equipment in 20X7?

• A) $600.
• B) $900.
• C) $1,000.
• D) $3,900.

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Definitions:

Time Horizon Categories

The classification of planning or forecasting periods into short-term, medium-term, and long-term, based on their respective durations.

Short-Range

Pertaining to activities, planning, or forecasting that covers a relatively brief period of time, typically up to one year.

Medium-Range

Pertaining to the intermediate term, often in the context of planning, forecasting, or operations.

Long-Range

Pertaining to strategic decisions or actions that consider and impact a significant period into the future, often beyond the immediate or short term.