A gain from sale of equipment would appear on the cash flow statement using the indirect approach as a(n):
A) addition under financing activities
B) addition under investing activities
C) addition to net income in the operating activities section
D) deduction from net income in the operating activities section

Question

Quizplus · Accepted Answer

In the indirect method, gains from the sale of equipment are deducted from net income in the operating activities section because they are non-cash items that were included in net income.

A Gain from Sale of Equipment Would Appear on the Cash