A Building with a Cost of $163,000 and Accumulated Depreciation

question 23

True/False

A building with a cost of $163,000 and accumulated depreciation of $32,000 was sold for a $11,000 gain.When using the indirect method, the cash generated from this investing activity was $131,000.

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Definitions:

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the total quantity of output produced.

Profit

The financial gain realized when the amount of revenue gained exceeds the expenses, costs, and taxes needed to sustain the activity.

Profit-Maximizing

A strategy or approach aimed at achieving the highest possible profit from business operations.

Fixed Cost

Costs that do not change with the level of output produced, such as rent, salaries, and insurance expenses.