An Analysis of Changes in Selected Statement of Financial Position

question 79

Multiple Choice

An analysis of changes in selected statement of financial position accounts of Hierarchy Corporation shows the following for the current year:
$\begin{array} { | c | l | } \hline \text { Property, Plant, and Equipment accounts: } & \\\hline \text { Debit entries to asset accounts } & \$ 504,000 \\\hline \text { Credit entries to asset accounts } & \$ 768,000 \\\hline \begin{array} { c } \text { Debit entries to accumulated depreciation accounts } \\\text { (resulting from sale of PPE assets) }\end{array} & \$ 72,000 \\\hline \begin{array} { c } \text { Credit entries to accumulated depreciation accounts } \\\text { (representing depreciation for the current year) }\end{array} & \$ 192,000 \\\hline\end{array}$ Hierarchy's income statement for the current year includes a $9,600 gain on disposal of property, plant, and equipment. All payments and proceeds relating to purchase or sale of property, plant, and equipment were in cash.

-Total cash proceeds received by Hierarchy from sales of property, plant, and equipment during the current year amounted to:

• A) $696,000.
• B) $705,600.
• C) $633,600.
• D) $768,000.

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Definitions:

Generalization

Drawing broad conclusions from specific instances; in psychology, it refers to the process of applying findings from a study to larger population segments.

Flooding

A psychological technique used in therapy to help individuals face their fears by exposing them to high levels of emotional stimuli.

Systematic Desensitization

A therapeutic method used to reduce phobia or anxiety through gradual exposure to the feared object or situation combined with relaxation techniques.

Generalized

refers to a concept or phenomenon that is made broad and not limited to specific instances, often forming general statements or theories based on observations.