Which of the following is not an addition to net income when determining the cash flows from operating activity under the indirect method?

Question

Quizplus · Accepted Answer

A gain on sale of equipment is not added back to net income in the operating section of the cash flow statement under the indirect method because it is considered an investing activity, not an operating activity. The gain is subtracted from net income to adjust for the fact that it does not affect cash flows from operating activities.

Which of the Following Is Not an Addition to Net