ovehond oonls allocated to 0. Which of the following is the conece ceder of the
ID: 2593935 • Letter: O
Question
ovehond oonls allocated to 0. Which of the following is the conece ceder of the sections on a saliment of cash ows I ss or $35,000 from the sale of equipment would be inchaded in which of the activities sections of the statement of cash flows? A. Operating B. Investing C Financing D. Would not be on the statenent of cash flows 12. A company purchases equipment for use in its business activities. Where would this transaction appear if the company prepares the statement of cash flows using the indirect method or the direct method? The purchase of equipment would be presented in the mon-cash investing and financing B. The purchase of equipment would be presented in the financing activities section as a C The purchase of equipment would be presented in the operating activities section as a activities section under both methods cash payment under both methods reduction in net income under the indirect method and as a cash payment under the direct method D. The purchase of equipment would be presented in the investing activities section as a cash payment under both methodsExplanation / Answer
7 and 8 are not visible and I can see that u have already done 9,10 and 12 part but not 11 so i am proving answer to 11
Answer D
As loss on sale of equipment does not effect any cash flows so it will not be included in CFS. The amount received on sale will be included in Investing but loss doesnot effect Cash flow so it will not be included in CFS.
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