Sureteck Industries Prepares Its Cash Flow Statement Using the Direct

question 168

Multiple Choice

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

• A) $2,500
• B) $7,000
• C) $9,500
• D) $4,500

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Definitions:

Economic Viability

The ability of an entity or activity to sustain itself financially over the long term.

Alternatives

Different options or choices available in a given situation, often considered when making decisions.

Reducing Cost

Measures taken to decrease the costs associated with the production or delivery of goods and services.

Modernization

The process of adopting the latest technology, organizational practices, or societal norms, aiming at improving efficiency and effectiveness.