Martin Company Is Preparing Its Statement of Cash Flows Using

question 124

Multiple Choice

Martin Company is preparing its statement of cash flows using the indirect method. During the year, they sold equipment for $5,990 cash. The net book value of the asset prior to sale was $5,550. Which of the following statements is true?

• A)The gain on sale of $440 would be added back to net income in the operating activities section.
• B)The book value of the assets sold would be shown as a negative cash flow in the investing activities section.
• C)The cash receipt of $5,990 would be shown as a positive cash flow in the investing activities section.
• D)The gain on sale of $440 would be shown as a positive cash flow in the financing activities section.

Understand the principles and assumptions underlying different counseling approaches.

Recognize the importance of self-awareness and its impact on the counseling process.

Identify the stages of the counseling process and the key tasks associated with each stage.

Learn about crisis intervention strategies and how to support clients in crisis.

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Definitions:

Corporation

A legal entity separate from its owners, with the right to own assets, incur liabilities, and sell stock.

Obtain Capital

The process of securing funding or resources necessary for business operations, investments, or projects, typically through equity, debt, or other financial instruments.

Limited Life

Refers to the finite existence of a tangible or intangible asset or entity, emphasizing its bounded operational or functional period.

Limited Liability

A legal structure that limits the personal liability of the owners and shareholders of a company for the company's debts and actions.