Freedom Enterprises Uses the Direct Method in Preparing Its Cash

question 191

Multiple Choice

Freedom Enterprises uses the direct method in preparing its cash flow statement.Freedom sold machinery with a book value of $36,700 at a loss of $7,200.The amount to be reported on the cash flow statement under "Cash received from sale of property,plant,and equipment" is:

• A) $43,900
• B) $29,500
• C) $36,700
• D) $7,200

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Definitions:

Extinction

Extinction, in psychology, is the process through which a conditioned response decreases or disappears as a result of repeated exposure without the unconditioned stimulus.

Conditioned Stimulus

An originally neutral stimulus that, after association with an unconditioned stimulus, comes to trigger a conditioned response.

Conditional Response

An acquired reflex to a stimulus initially neutral, after its frequent association with a stimulus that naturally invokes a response.

Rescorla

An influential figure in psychology known for his work on associative learning and conditioning, particularly the Rescorla-Wagner model of classical conditioning.