A Company Bought $250,000 of Equipment with an Expected Life

question 21

Multiple Choice

A company bought $250,000 of equipment with an expected life of ten years and no residual value.After six years the company sold the equipment for $94,000.If the company uses straight-line depreciation and the indirect method is used to determine cash flows from operating activities,which of the following reflects how the sale of the equipment would be reported in the statement of cash flows?

• A)$94,000 is recorded as a cash inflow from investing activities and no other sections of the statement are affected.
• B)$94,000 is recorded as a cash inflow from investing activities and $6,000 is added to convert net income to net cash flow provided by operating activities.
• C)$94,000 is recorded as a cash inflow from investing activities and $6,000 is subtracted to convert net income to net cash flow provided by operating activities.
• D)$94,000 is recorded as a cash inflow from operating activities.

Differentiate between the independent and dependent variables in an experimental setup.

Understand the purpose and application of mixed-methods approaches in research.

Understand the distinction between open-ended and closed-ended questions, including their advantages and disadvantages.

Grasp the fundamental principles of grounded theory and content analysis in qualitative research.

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Definitions:

Anxious

Anxious describes a feeling of worry, nervousness, or unease about something with an uncertain outcome.

Openness to Experience

A personality trait characterized by a willingness to try new things and be open to new and diverse experiences.

Narrow Minded

Having or showing a limited outlook or willingness to consider alternative ideas, perspectives, or options.

Operations

The day-to-day activities involved in running a business, producing goods, or providing services, focusing on efficiency and effectiveness of the process.