The Sonesta Company Sold Equipment for Cash

question 108

Multiple Choice

The Sonesta Company sold equipment for cash. The income statement shows a loss on sale of $5,000. The net book value of the asset prior to sale was $24,000. Which of the following statements describes the cash effect of the transaction?

• A) Positive cash flow of $29,000 in investing activities
• B) Negative cash flow of $19,000 in operating activities
• C) Positive cash flow of $19,000 in investing activities
• D) Negative cash flow of $14,000 in financing activities

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Definitions:

Method Signature

A method signature is the part of the method declaration that includes the method's name and parameter types.

Parameter Types

The data types of parameters accepted by functions or methods, determining what kind of arguments can be passed to them.

Argument

A value or reference passed to a function or method when it is called, used as an input to influence the operation or output.

Accessor Methods

Methods in object-oriented programming used to get the values of private fields of a class.