Allen Company Bought a New Copy Machine to Be Depreciated

question 3

Multiple Choice

Allen Company bought a new copy machine to be depreciated straight line for three years for use by sales personnel. Where would this purchase be reflected on the Statement of Cash Flows?

• A) It would be an expense on the income statement so it would be reflected in operating cash flows.
• B) It would be an addition to property, plant and equipment so it would be an investing activity.
• C) It would be an addition to cash so it would be reflected in the change in cash.
• D) None of the above answers is correct.

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Definitions:

Inflections

Changes in the form of words to express different grammatical categories such as tense, mood, voice, aspect, person, number, gender, and case.

Theory-Theory

The idea that humans naturally construct theories to explain and predict others’ behavior based on their observations of the world, similar to how scientists develop theories.

Pragmatics

The branch of linguistics dealing with the use and function of language in context and the social rules governing language use.

Code-Switching

The practice of alternating between two or more languages or dialects within a single conversation or context.