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

---

Definitions:

Monochlorination Products

Products resulting from the introduction of one chlorine atom into an organic molecule, typically achieved through a free radical chlorination reaction.

3,4-Dimethylhexane

A branched alkane with the formula C8H18, identified by its specific arrangement of methyl groups at the third and fourth carbon atoms.

Carbanion

A negatively charged ion (anion) that contains a carbon atom bearing three bonds and one lone pair of electrons, making it very reactive.

Reactive Intermediate

A short-lived species formed during the course of a chemical reaction which cannot be isolated under normal conditions.