Diamond in the Dust Ltd

question 35

Multiple Choice

Diamond In the Dust Ltd.uses the indirect method for the cash flow statement.In 2017,they sold equipment for $8,400 cash.The net book value of the asset prior to sale was $9,000.Which of the following statements is true?

• A) The loss on sale of $600 would be added back to net income in the operating activities section.
• B) The book value of the assets sold would be shown as a negative cash flow in the investing activities section.
• C) The book value of the assets sold would be shown as a negative cash flow in the operating activities section.
• D) The loss on sale of $600 would be shown as a positive cash flow in the financing activities section.

---

Definitions:

Amino Acids

The building blocks of proteins, consisting of a central carbon atom bonded to an amino group, a carboxyl group, a hydrogen atom, and a variable side chain.

Proteins

Massive biological molecules, known as macromolecules, are composed of one or more extended sequences of amino acid residues and fulfill a wide range of roles in organisms.

Peptide Bonds

Chemical bonds formed between amino acids during the formation of proteins.

Amino Acids

Organic compounds containing an amino group and a carboxylic acid group, serving as the building blocks of proteins, involved in various biological processes.