A transaction involving a gain on the sale of equipment affects cash provided (used) by
A)financing and investing activities.
B)operating and financing activities.
C)operating and investing activities.
D)operating, financing, and investing activities.

Question

Quizplus · Accepted Answer

The gain on the sale of equipment affects operating activities because it is included in net income, which is adjusted for non-cash gains in the operating section of the cash flow statement. It also affects investing activities because the cash received from the sale is recorded there.

A Transaction Involving a Gain on the Sale of Equipment