A loss on the sale of a building is added to net income in the operating activities section of the statement of cash flows under the direct method.

Name: A loss on the sale of a building is added to net income in the operating activities section of the statement of cash flows under the direct method.
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Question

Quizplus · Accepted Answer

A loss on the sale of a building is a non-operating activity and should be reported in the investing or financing section of the statement of cash flows, depending on the nature of the transaction.

A Loss on the Sale of a Building Is Added