medium · Principles of Finance financial-statements-markets-wc
A company sells a piece of equipment for $50,000 cash. The equipment had a book value (Net PP&E) of $40,000.
How does this 'Investing Activity' flow through the Income Statement?
- The $40,000 book value is reported as an expense
- A gain of $10,000 is reported
- The full $50,000 is reported as Revenue
- There is no income statement effect, as it is an investing activity
Sign up free to see the explanation and track your rank →
More Principles of Finance financial-statements-markets-wc practice
- What is the Cash Flow from Operations (CFO)?
- What are its Current Ratio and Quick Ratio respectively?
- What is the Enterprise Value (EV) of the firm?
- What is the Interest Coverage Ratio?
- If the firm is 100% equity financed, what is its ROE?
- Which of the following would be categorized as a 'Cash Flow from Investing Activities' on
- What is the company's Interest Coverage Ratio?
- What is the firm's Quick Ratio?