For each of the following items, indicate by choosing the appropriate code letter, how the item should be reported in the statement of cash flows using the direct method:
-Sale of equipment for cash at book value.
A) Added in determining cash receipts from customers
B) Deducted in determining cash receipts from customers
C) Added in determining cash payments to suppliers
D) Deducted in determining cash payments to suppliers
E) Cash outflow - investing activity
F) Cash inflow - investing activity
G) Cash outflow - financing activity
H) Cash inflow - financing activity
I) Significant non-cash investing and financing activity
J) Is not shown

Question

Quizplus · Accepted Answer

The sale of equipment for cash at book value is considered a cash inflow from investing activities, as it involves the disposal of a long-term asset.

For Each of the Following Items, Indicate by Choosing the Appropriate