Under the indirect method, a gain on the sale of long- term assets is deducted from net income under the operating activities.

Name: Under the indirect method, a gain on the sale of long- term assets is deducted from net income under the operating activities.
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Question

Quizplus · Accepted Answer

In the indirect method of the cash flow statement, gains from the sale of long-term assets are deducted from net income because they are non-operating activities and do not affect cash flow from operating activities.

Under the Indirect Method, a Gain on the Sale of Long-