How Should Purchases,sales,and Depreciation of Plant Assets Be Classified in Hierarchy's

question 113

Multiple Choice

How should purchases,sales,and depreciation of plant assets be classified in Hierarchy's statement of cash flows for the current year? (Assume the direct method is used by Hierarchy. )

• A)Purchases of plant assets are classified as operating activities;sales of plant assets are classified as financing activities;depreciation is classified as an operating activity.
• B)Purchases of plant assets and depreciation are classified as investing activities;sales of plant assets are classified as operating activities.
• C)Purchases and sales of plant assets are classified as investing activities;depreciation does not appear as an operating,financing,or investing activity.
• D)Since plant assets are used to generate income from operations,purchases,sales,and depreciation of plant assets are all classified as operating activities.

---

Definitions:

White Matter

Tissue in the brain and spinal cord made up of nerve fibers that connect different parts of the nervous system, important for efficient communication between neurons.

Gray Matter

A region of the brain and spinal cord consisting mainly of neuronal cell bodies and lacking myelinated axons, associated with processing and cognition.

Substantia Nigra Cells

Substantia nigra cells are neurons located in the midbrain that play a crucial role in reward, addiction, and movement; their degeneration is linked to Parkinson's disease.

Wernicke's Aphasia

A condition resulting from damage to the language comprehension area in the temporal lobe, characterized by fluent but nonsensical speech and difficulty understanding spoken words.