Rouse Company Owned an Asset That Had Cost $32,000

question 44

Multiple Choice

Rouse Company owned an asset that had cost $32,000.The company sold the asset on January 1,2012 for $8,000.Accumulated depreciation on the day of sale amounted to $26,000.Based on this information,the sale would result in:

• A) an $8,000 increase in total assets.
• B) a $6,000 cash inflow in the financing activities section of the cash flow statement.
• C) a $2,000 decrease in total assets.
• D) an $8,000 cash inflow in the investing activities section of the cash flow statement.

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Definitions:

Fluoresce

The property of absorbing light of one wavelength and then emitting light of a longer wavelength, visible as a bright glow under certain conditions.

Chloroplasts

Organelles found in plant cells and eukaryotic algae that conduct photosynthesis, converting light energy into chemical energy.

CAM Plants

Plants that use Crassulacean Acid Metabolism, a photosynthetic adaptation that allows them to minimize water loss by opening their stomata at night.

Stomata

Tiny openings or pores in plant leaves and stems that control gas exchange for photosynthesis and respiration.