Asked by
Manish Tandukar
on Nov 15, 2024
Verified
If a loss of $80,000 is incurred in selling equipment having a book value of $220,000, cash flow will increase:
A) $300,000.
B) $140,000.
C) $80,000.
D) $220,000
Selling Equipment
The process of disposing of company-owned machinery or equipment, usually to generate cash or reduce assets.
Book Value
Cost of equipment less accumulated depreciation.
Loss
The result when a company's expenses exceed its revenues during a specific period, indicating a decrease in net assets.
- Comprehending the effects on cash flow resulting from the acquisition and divestiture of assets, specifically the disposal of plant, property, and equipment.
- Analyzing the impact of transactions and events on cash flow, taking into account asset disposal losses or shifts in account balances.
Verified Answer
PP
Learning Objectives
- Comprehending the effects on cash flow resulting from the acquisition and divestiture of assets, specifically the disposal of plant, property, and equipment.
- Analyzing the impact of transactions and events on cash flow, taking into account asset disposal losses or shifts in account balances.