Lincoln Company 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

Quizplus · Accepted Answer

Abandoning fully depreciated equipment does not involve a cash flow, as it is simply removing an asset from the books that has already been fully depreciated and does not involve the receipt or payment of cash.

Lincoln Company Engaged in This Transaction: Abandoned Fully Depreciated Equipment