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 these answer choices are correct.

Question

Quizplus · Accepted Answer

This transaction would be reported as an investing activity since it involves the sale of a long-term asset (the printer) for cash. It is not an operating activity since it does not relate to the company's primary business operations, and it is not a financing activity since it does not involve the issuance or repayment of debt or equity.

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