During the Current Year,ABC Corporation Did Not Purchase Any Property,plant

question 64

Multiple Choice

During the current year,ABC Corporation did not purchase any property,plant and equipment,but sold land with a book value of $6,000 for $12,000 cash and sold a delivery truck with a cost of $18,000,depreciation of $16,000,and an appraised value of $5,000 for $4,000.What is ABC's net cash flows provided by investing activities for the year?

• A) $8,000
• B) $11,000
• C) $16,000
• D) $24,000

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Definitions:

Market Value Weighted Index

An index in which each constituent is weighted according to its market value, so larger companies have a bigger impact on the index's performance.

Index Value

The total value of all the stocks or securities within a specific index, representing the performance of a particular market or market segment.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for the financing of inventory, accounts receivable, and meeting short-term liabilities.

Treasury Bills

Short-term government securities issued at a discount from the face value and mature in a year or less, representing a secure, low-risk investment option.