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:

Bolsheviks

The Bolsheviks were a radical leftist group that led the Russian Revolution of 1917, eventually establishing a communist government in Russia.

Leon Trotsky

A Russian revolutionary, Marxist theorist, and Soviet politician who played a leading role in the Bolshevik Revolution of 1917.

Politically Conscious

Being politically conscious refers to the awareness and concern about political issues, policies, and the overall political environment, often leading to active participation in political processes.

Bolsheviks

A faction of the Russian Social Democratic Party, led by Vladimir Lenin, that seized power in Russia in 1917 and established a communist government.