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:

Tied Values

Instances where two or more data points or observations have the exact same value in a dataset.

Averaging Procedure

A method of summarizing data by calculating the mean or average of a set of values.

Wilcoxon Rank Sum Test

This statistical test, which doesn't assume a specific distribution, is used to assess if two distinct samples have different population mean rankings.

Mann-Whitney Test

A non-parametric test used to evaluate whether two independent samples are drawn from the same distribution or differ significantly.