The Accounting Records of Calli Inc

question 34

Multiple Choice

The accounting records of Calli Inc.indicate that the firm sold for $1,800 during Year 2 a machine originally costing $6,000, with accumulated depreciation of $4,600.The journal entry made to record this sale was as follows:
Cash .........................................1,800
Accumulated Depreciation .......................4,600
Loss on Disposal of Equipment .................... 400
Equipment .......................................6,000
In preparing the statement of cash flows using the work sheet, the accountant.

• A)adds the $400 loss to net income in computing cash flow from operations.
• B)subtracts the $400 loss from net income in computing cash flow from operations.
• C)adds the $400 loss to net income in computing cash flow from investing activities.
• D)subtracts the $400 loss from net income in computing cash flow investing activities.
• E)subtracts the $400 loss from retained earnings in computing cash flow investing activities.

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Definitions:

Movements

Actions or activities involving change in position or posture of the body.

Brainstem

A part of the brain that controls basic life functions such as heart rate, breathing, and sleeping.

Hippocampus

A region of the brain involved in memory formation, organization, and retrieval, as well as spatial navigation.

Hypothalamus

A small region at the base of the brain responsible for controlling numerous bodily functions, including hunger, thirst, temperature regulation, and the release of various hormones.