Equipment with a Book Value of $8,000 Is Sold for $3,000

question 114

Multiple Choice

Equipment with a book value of $8,000 is sold for $3,000 cash.The statement of cash flows will report a:

• A)$3,000 cash inflow in the operating activities section
• B)$3,000 cash inflow in the investing activities section.
• C)$5,000 cash outflow in the operating activities section.
• D)$5,000 cash outflow in the financing activities section.

---

Definitions:

Mental Abilities

Intellectual skills and capabilities that include reasoning, problem-solving, and the capacity to understand complex ideas.

Babbling

Describes the early stage of child language development characterized by the production of sounds or syllables that do not form recognizable words.

Schemes

Cognitive frameworks or patterns of action and thought used for processing and organizing information.

Holophrase

A single word used by an infant that expresses a complete idea or sentence.