Carlton Industries Prepares Its Cash Flow Statement Using the Direct

question 144

Multiple Choice

Carlton Industries prepares its cash flow statement using the direct method.Carlton sold a piece of equipment used in their operations with a book value of $6,400 at a loss of $800.The amount to be reported on the cash flow statement under investing activities is:

• A) $(6,400)
• B) $800
• C) $7,200
• D) $5,600

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Definitions:

VSEPR

A model used in chemistry to predict the geometry of individual molecules from the number of electron pairs surrounding their central atoms.

Lewis Structures

Diagrammatic methods for representing the bonds between atoms in a molecule and the lone pairs of electrons that may exist.

Elemental Symbol

A one or two-letter abbreviation derived from the element's English or Latin name used to represent an element in chemical formulas.

Lewis Structure

A diagrammatic representation of the bonding between atoms of a molecule and the lone pairs of electrons in the molecule, showing how valence electrons are distributed.