Charlene Company sold a printer with a cost of $68,000 and accumulated depreciation of $23,000 for $20,000 cash. This transaction would be reported as:
A)An operating activity.
B)An investing activity.
C)A financing activity.
D)None of the above is correct.

Question

Quizplus · Accepted Answer

The sale of a printer represents the disposal of a long-term asset and is therefore classified as an investing activity. The cash received from the sale should be reported in the cash flows from investing activities section of the statement of cash flows.

Charlene Company Sold a Printer with a Cost of $68,000