The Sale of a Long-Term Asset Is Reported on the Statement

question 205

True/False

The sale of a long-term asset is reported on the statement of cash flows as an increase to cash from investing activities.The increase is equal to the cost of the asset.

---

Definitions:

Dissenting Shareholder

A shareholder who disagrees with a corporate action, such as a merger or acquisition, and is typically afforded certain rights, including the right to be bought out by the corporation.

Management Buyouts

A transaction where a company's management team purchases the assets and operations of the business they manage, becoming the new owners.

Borrowed Funds

Money that has been loaned to a borrower, which they are obligated to repay, typically with interest.

Affirmative Majority Vote

A decision-making process where a proposition is passed if it receives more than half of the votes cast by those entitled to vote.