Poole Industries Prepares Its Cash Flow Statement Using the Direct

question 22

Multiple Choice

Poole Industries prepares its cash flow statement using the direct method.Poole sold equipment with a book value of $7,000 at a gain of $2,500.The amount to be reported on the cash flow statement under operating activities is:

• A) $2,500
• B) $7,000
• C) $9,500
• D) This is not an operating activity.

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Definitions:

Acute Myocardial Infarction

A medical emergency condition commonly known as a heart attack, caused by the interruption of blood flow to a part of the heart, resulting in heart muscle damage.

Nitroglycerine Drip

A medical treatment involving the administration of nitroglycerine through an IV to treat certain heart conditions by dilating blood vessels.

Acute Pain

A sudden onset of discomfort or pain that serves as a symptom of injury or illness and typically has a clear cause.

Decreased Cardiac Output

A condition characterized by the heart's inability to pump an adequate volume of blood to meet the body's needs, leading to symptoms such as fatigue and shortness of breath.