A Building with a Book Value of $54,000 Is Sold

question 40

Multiple Choice

A building with a book value of $54,000 is sold for $63,000 cash Using the indirect method, this transaction should be shown on the statement of cash flows as follows:

• A) an increase of $54,000 from investing activities
• B) an increase of $63,000 from investing activities and a deduction from net income of $9,000
• C) an increase of $9,000 from investing activities
• D) an increase of $54,000 from investing activities and an addition to net income of $9,000

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Definitions:

Ego

Within the framework of psychoanalytic theory, it's the component of the personality that serves as an intermediary among the desires of the id, the superego, and the constraints of reality.

Freud

Sigmund Freud, an Austrian neurologist and the founding father of psychoanalysis, a method for treating psychopathology through dialogue.

Oedipus Complex

A Freudian theory describing a child's feelings of desire for their opposite-sex parent and jealousy towards the same-sex parent.

Latency Period

A phase in psychosexual development, occurring roughly between the ages of six and puberty, when sexual urges are repressed or dormant.