Equipment That Had a Book Value of $6,000 Is Sold

question 138

Multiple Choice

Equipment that had a book value of $6,000 is sold for $20,000 cash. The statement of cash flows will report a:

• A)$20,000 inflow in the investing activities section.
• B)$20,000 cash inflow in the financing activities section.
• C)$20,000 cash outflow in the investing activities section.
• D)$14,000 inflow in the operating activities section.

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Definitions:

Oxymizer

A device that increases the efficiency of oxygen delivery from a supply system to the patient, often used in chronic lung conditions.

Mechanical Ventilator

A machine that supports or takes over the breathing process for patients who are unable to breathe adequately on their own.

Low-Pressure Alarm

An alert mechanism on medical devices, such as ventilators, indicating that air or fluid pressure has fallen below a pre-set threshold, potentially signaling a problem or leak.

Endotracheal Tube Cuff

A balloon-like structure on an endotracheal tube, which, when inflated, provides a seal between the tube and the trachea to maintain airway support during anesthesia or critical care.