Albers Enterprises Uses the Direct Method When Preparing Its Statement

question 4

Multiple Choice

Albers Enterprises uses the direct method when preparing its statement of cash flows. Albers sold equipment with a book value of $51,000 at a gain of $7,000. The amount to be reported on the statement of cash flows under "proceeds from the sale of plant assets" is:

• A)$44,000.
• B)$ 7,000.
• C)$58,000.
• D)$51,000.

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Definitions:

Muscular Layer

A layer of muscle tissue in various organs, including the stomach and intestines, responsible for movement and contractions.

Hepatocyte

A cell of the liver involved in protein synthesis, detoxification, and metabolism of carbohydrates and fats.

Duodenal Mucosa

The innermost layer of the duodenum, containing glands that secrete enzymes and mucus to aid in digestion.

Microvilli

Microscopic cellular membrane protrusions that increase the surface area for absorption or secretion in various epithelial cells.