Dover Co'S Comparative Balance Sheet Indicated That the Equipment Account Increased

question 68

Multiple Choice

Dover Co.'s comparative balance sheet indicated that the Equipment account increased by $40,000.Upon further investigation of the account changes,it is determined that Dover purchased equipment totaling $70,000 for the year.It also sold equipment with an original cost of $30,000 for $8,000 cash.Assuming these are the only transactions affecting the investing activities,Dover will report net cash flows provided by (used in) investing activities of:

• A) ($40,000).
• B) ($70,000).
• C) ($32,000).
• D) ($62,000).

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Definitions:

Safe Deposit Box

A secure container, usually found at a bank, where customers can store valuable personal items.

Bank Statement Adjustment

The process of modifying the balance on a bank statement to reflect transactions that have not been recorded by the bank by the end of the reporting period.

Company Books Adjustment

The process of altering entries in the accounting records to reflect more accurate figures or to record unrecorded transactions.

Control Environment

A collection of guidelines, procedures, and frameworks that establish the foundation for executing internal control throughout the organization.