How would the sale of equipment for cash be classified and reported on the statement of cash flows?
Cash flow can be defined as the movement of cash of the organization. This cash flow can move from the organization to outsiders and from outsiders to the organization. This is termed as cash outflow and cash inflow respectively.
Answer and Explanation: 1
If the business has sold equipment on cash, then the same would be classified under the heading of investing activity. As the transaction leads to an...
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fromChapter 15 / Lesson 3
Cash flow statements are a measure of how money circulates throughout an organization. Learn to use the indirect method to prepare a cash flow statement, including where to get and how to organize the necessary information.