Productivity Enterprises Uses the Direct Method When Preparing Its Statement

question 18

Multiple Choice

Productivity Enterprises uses the direct method when preparing its statement of cash flows. Productivity sold equipment with a book value of $9,000 at a loss of $1,500. The amount to be reported on the statement of cash flows in the operating activities section is:

• A)($1,500).
• B)$ 0.
• C)$ 7,500.
• D)$10,500.

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Freedom of Information Act (FOIA)

A United States federal law that grants public access to documents or other data in the possession of government agencies, subject to various exemptions.

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Department of Motor Vehicles, a state-level government agency that administers vehicle registration and driver licensing.

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Fourth Branch of Government

A term sometimes used to describe bodies or groups that have significant influence over public policy outside the traditional three branches of government.