Kevin Woodworking Company Is Preparing Its Statement of Cash Flows

question 130

Multiple Choice

Kevin Woodworking Company is preparing its statement of cash flows using the indirect method.During the year,Kevin sold equipment for $5,990 cash.The net book value of the asset was $4,970.Which of the following statements is true?

• A)The gain on sale of $1,020 is added back to net income in the operating activities section.
• B)The book value of the assets sold is shown as a negative cash flow in the investing activities section.
• C)The cash receipt of $5,990 is shown as a positive cash flow in the investing activities section.
• D)The gain on sale of $1,020 is shown as a positive cash flow in the financing activities section.

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Definitions:

IV Solution

A liquid solution delivered directly into a vein through an intravenous line for hydration or medication.

Infusion Rate

The speed at which a drug or other substance is administered intravenously to a patient, usually measured in milliliters per hour (ml/hr).

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A noninvasive, ultrasound-based diagnostic tool used to measure the volume of urine remaining in the bladder to assess bladder emptying conditions.

Urine Output

A measure of the volume of urine excreted by the kidneys over a given period of time, used as an indicator of kidney function and hydration status.