When an asset is sold at a gain, why is the gain not reported as a cash
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 73% (15 reviews)
When an asset is sold at a gain the gain is not reported as a cash inflow from operating acti...View the full answer
Answered By
Sandhya Sharma
I hold M.Sc and M.Phil degrees in mathematics from CCS University, India and also have a MS degree in information management from Asian institute of technology, Bangkok, Thailand. I have worked at a international school in Bangkok as a IT teacher. Presently, I am working from home as a online Math/Statistics tutor. I have more than 10 years of online tutoring experience. My students have always excelled in their studies.
4.90+
119+ Reviews
214+ Question Solved
Related Book For
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Question Posted:
Students also viewed these Managerial Accounting questions
-
A professional football player's contract is sold at a gain after it has been held for two years. What issues should the team consider in determining the nature of this gain?
-
When a long-term operational asset is sold at a gain, how is the balance sheet affected? Is the statement of cash flows affected? If so, how?
-
At Town Lighting, a light fixture is sold at a price of $382.20, including a markup of 40% of cost. (a) What is the cost of the item? (b) What is the rate of markup based on the selling price?
-
Under what circumstance is it most appropriate to travel in reverse with a load? A. When you are carrying a non-standard load B. When a tall load obstructs your forward vision C. When the load is...
-
Ronal Canada Ltd. is a Canadian subsidiary of Ronal Inc., a U.S. multinational public corporation. You are the tax manager responsible for reviewing the corporate tax return and tax provision for the...
-
Given f(x) = 1 , x+5 find the average rate of change of f(x) on the interval [9, 9+ h]. Your answer will be an expression involving h. Submit Question
-
Why can patterns be labeled experienced reuse?
-
The McDuff Credit Union advertises their ability to quickly process personal loan applications for their members. As seen in Table 11.18, the loan process requires four steps and takes approximately...
-
At the beginning of each day, the Factory General Manager consults with the sales department and determines which jobs will be completed for the day. The General Manager forwards the Job Cost Sheet...
-
A horizontal conveyer belt moving at a uniform speed of 1.2 M/S transports material at the rate of 100 tonnes/hr. Belt is 200 M long and driven by a motor at 1200 rpm. (a) Determine the load inertia...
-
Given sales revenue of $200,000, how can it be determined whether or not $200,000 cash was received from customers?
-
Are ordinary losses and extraordinary losses treated alike in preparing a statement of cash flows? Explain.
-
David Burton smoked Camel cigarettes for 43 years, and, in 1993, he developed serious circulatory problems in his legs. His doctor informed him that smoking was causing his circulatory problems. Two...
-
How does the use of interperiod tax allocation procedures affect the amount of income assigned to noncontrolling shareholders in the period in which the subsidiary records unrealized intercompany...
-
Pretzel Corporation acquired 100 percent of Stick Companys outstanding shares on January 1, 20X7. Balance sheet data for the two companies immediately after the purchase follow: As indicated in the...
-
What does object state mean?
-
Explain how economic factors usually dictate prices of goods and services.
-
On April 1, 20X2, Pack Company paid $800,000 for all of Sack Corporations issued and outstanding common stock. Sacks recorded assets and liabilities on April 1, 20X2, were as follows: On April 1,...
-
If molecules in a liquid have a permanent dipole, what is the strongest type of intermolecular attraction?
-
A woman at a point A on the shore of a circular lake with radius 2 mi wants to arrive at the point C diametrically opposite on the other side of the lake in the shortest possible A time. She can walk...
-
It may be surprising to some observers to find out that the Royal Mail Group is still one of the largest organizations in the UK. It now consists of Royal Mail itself, which concentrates on the...
-
Lazaro Inc. sells goods on the installment basis and uses the installment-sales method. Due to a customer default, Lazaro repossessed merchandise that was originally sold for $800, resulting in a...
-
Lazaro Inc. sells goods on the installment basis and uses the installment-sales method. Due to a customer default, Lazaro repossessed merchandise that was originally sold for $800, resulting in a...
-
At December 31, 2010, Grinkov Corporation had the following account balances. Installment Accounts Receivable, 2009........................$ 65,000 Installment Accounts Receivable,...
-
Of 15,000 individuals aged 18 years living in Ontario, 5,000 visited their family doctor in the past year and of these individuals 1,875 were diagnosed with lifelong depression. Assuming everyone was...
-
If A = 9 3 -5 -8 -7 01-87 2 00-765 000-4 3 0 0 0 0 -9 then det (A) =
-
To improve the effectiveness of its teaching staff, the administration of a high school offered the opportunity for all teachers to participate in a workshop. They were not required to attend;...
Study smarter with the SolutionInn App