Standard Corporation sold fully depreciated equipment for Rs.5,000. This transaction will be reported on the cash flow statement as a(n):
Correct answer: B. Investing activity
- A. Operating activity
- B. Investing activity
- C. Financing activity
- D. None of the given optionsFinancial Planning & Management
Explanation
Cash received from selling equipment is an investing cash inflow because equipment is a long-term asset. Its being fully depreciated affects book value and any gain or loss, not the cash-flow classification.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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