A gain on the sale of a fixed asset is reported on the statement of cash flows:
A) as an adjustment to operating activities under the direct method
B) as an adjustment to operating activities under the indirect method
C) as an adjustment to operating activities, regardless of the method used
D) None of these answers is correct.

Question

Quizplus · Accepted Answer

Under the indirect method, gains on the sale of fixed assets are subtracted from net income in the operating activities section to adjust for non-cash transactions.

A Gain on the Sale of a Fixed Asset Is