Royer Corporation engaged in this transaction:
Abandoned fully depreciated equipment.
Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.
A) Investing activities section
B) Operating activities section
C) Does not represent a cash flow
D) Financing activities section

Question

Royer Corporation engaged in this transaction:
 Abandoned fully depreciated equipment.
Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.
A) Investing activities section
B) Operating activities section
C) Does not represent a cash flow
D) Financing activities section

Quizplus · Accepted Answer

Abandoning fully depreciated equipment does not involve any cash flow, as there is no cash inflow or outflow associated with the transaction.

Royer Corporation Engaged in This Transaction