Equipment with a Book Value of $8,000 Is Sold for $3,000

question 114

Multiple Choice

Equipment with a book value of $8,000 is sold for $3,000 cash.The statement of cash flows will report a:

• A)$3,000 cash inflow in the operating activities section
• B)$3,000 cash inflow in the investing activities section.
• C)$5,000 cash outflow in the operating activities section.
• D)$5,000 cash outflow in the financing activities section.

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Definitions:

Three-Box Model

A model of memory that suggests information is processed through three stages: sensory, short-term, and long-term memory.

Sensory Register

The component of memory that holds incoming information from the senses for a very short period of time, allowing initial processing.

Implicit Memory

A type of memory that enables us to perform tasks without conscious awareness of these previous experiences, such as riding a bike.

Information-Processing Model

A cognitive approach that compares the human mind to a computer, emphasizing how information is input, processed, stored, and retrieved.