Governance Corporation Uses the Direct Method When Preparing Its Statement

question 35

Multiple Choice

Governance Corporation uses the direct method when preparing its statement of cash flows.Governance sold equipment with a book value of $13,000 at a loss of $3,000.The amount to be reported on the statement of cash flows under "proceeds from the sale of capital assets" is:

• A) $16,000
• B) $13,000
• C) $10,000
• D) $3,000

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Definitions:

Republican Party

A major political party in the United States that is associated with conservative and right-leaning policies.

Democratic Party

One of the two major political parties in the United States, traditionally associated with progressive and liberal policies.

Whig Party

A political party active in the middle of the 19th century in the United States, which was opposed to the policies of the Democratic Party and advocated for a more active role of the federal government, especially in supporting a market economy.

Know-Nothings

A political movement in the mid-19th century United States that was anti-immigrant and anti-Catholic, advocating for strict immigration laws.