Which of the following can a cash flow analysis of the final disposal of a capital asset (for example, machinery used in the operation of a business) not produce?
A) A net cash outflow.
B) A net cash inflow.
C) An income tax consequence.
D) An operating gain or loss.
E) An after-tax cash outflow.

Question

Quizplus · Accepted Answer

A cash flow analysis of the final disposal of a capital asset can produce a net cash outflow or inflow, an income tax consequence, and an after-tax cash outflow. However, it cannot produce an operating gain or loss as this would be already accounted for in the company's operating activities.

Which of the Following Can a Cash Flow Analysis of the Final