How is the loss on sale of land reported on the consolidated statement of cash flows?
A) $20,000 added to net income as an operating activity.
B) $20,000 deducted from net income as an operating activity.
C) $15,000 deducted from net income as an operating activity.
D) $5,000 added to net income as an operating activity.
E) $5,000 deducted from net income as an operating activity.

Question

Quizplus · Accepted Answer

A loss on the sale of land is added back to net income in the operating activities section of the cash flow statement to adjust for the non-cash loss that reduced net income.

How Is the Loss on Sale of Land Reported on the Consolidated