In a Statement of Cash Flows,if Equipment Is Sold at a Gain,the

question 36

Multiple Choice

In a statement of cash flows,if equipment is sold at a gain,the amount shown as a cash inflow from investing activities equals the carrying amount of the equipment

• A) with no addition or subtraction.
• B) plus the gain and less the amount of tax attributable to the gain.
• C) plus the gain only.
• D) plus both the gain and the amount of tax attributable to the gain.

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Definitions:

Rate of Return

The positive or negative change in an investment's value over a determined period, indicated as a percentage of the investment’s buying price.

Sole Shareholder

An individual or entity that owns 100% of the shares of a company, holding complete ownership.

Annual Percentage Rate

The annual rate charged for borrowing or earned through an investment, which includes all fees and costs.

Effective Annual Rate

The interest rate that describes the full amount of interest paid over one year, considering compounding.