Gains on the sale of plant and equipment should be subtracted from net income when computing cash from operating activities.

Name: Gains on the sale of plant and equipment should be subtracted from net income when computing cash from operating activities.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Gains on the sale of plant and equipment are non-operating items and should be subtracted from net income in the operating activities section of the cash flow statement to adjust for non-cash gains.

Gains on the Sale of Plant and Equipment Should Be