When equipment is sold for cash the amount received is reflected as a cash
A) inflow in the operating section.
B) inflow in the financing section.
C) inflow in the investing section.
D) outflow in the operating section.

Question

Quizplus · Accepted Answer

When equipment is sold for cash, it is considered an investing activity as it involves a change in long-term assets. Therefore, the amount received should be reflected as an inflow in the investing section of the cash flow statement.

When Equipment Is Sold for Cash the Amount Received Is