Included in Leonie’s Fixed Assets Was a Piece of Machinery

question 7

Multiple Choice

Included in Leonie’s fixed assets was a piece of machinery which cost £68 000 and on which depreciation of £32 000 had been charged. This was sold during the year for £28 000.
- what would be the effect, if any, on the income statement and the cash flow statement?

• A) Show a loss on sale of fixed asset in the income statement of £8000 and show that as a cash outflow
• B) Show a loss on sale of fixed asset in the income statement of £40000 and show that as a cash outflow
• C) Show a loss on sale of fixed asset in the income statement of £8000 and show a cash inflow of £36000
• D) Show a loss on sale of fixed asset in the income statement of £8000 and show a cash inflow of £28000
• E) None of the above

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Definitions:

Neurocognitive Functions

The cognitive functions closely linked to the neural processes of the brain, including memory, attention, problem-solving, and decision-making.

Professional Success

The achievement of goals and objectives set within a professional setting, reflecting growth, accomplishment, and recognition in one's career.

Intellectual Abilities

The capacity to think abstractly, reason, understand complex ideas, learn quickly, and learn from experience.

Antisocial Personality Disorder

A psychiatric condition where an individual persistently displays indifference towards morality and overlooks the rights and emotions of other people.