A gain on the sale of a plant asset should be included in which of the following sections of a statement of cash flows prepared using the direct method?
A) Investing activities
B) Operating activities
C) Financing activities
D) Any of these,if applied consistently from year to year

Question

Quizplus · Accepted Answer

The gain on the sale of a plant asset is a result of the company's investing activities, as it involves the disposal of a long-term asset that was previously used in the company's operations. Therefore, the gain should be included in the investing activities section of the statement of cash flows prepared using the direct method.

A Gain on the Sale of a Plant Asset Should