Under the indirect method of preparing the statement of cash flows, a loss on the sale of equipment is added to net income in the investing activities section.

Name: Under the indirect method of preparing the statement of cash flows, a loss on the sale of equipment is added to net income in the investing activities section.
Brand: Quizplus
Rating: 4.9 (55 reviews)

Question

Quizplus · Accepted Answer

Under the indirect method, a loss on the sale of equipment is added back to net income in the operating activities section, not the investing activities section.

Under the Indirect Method of Preparing the Statement of Cash