A gain from the sale of a company's property, plant, and equipment does not appear in the statement of cash flows prepared on the indirect method.

Question

Quizplus · Accepted Answer

In the statement of cash flows prepared using the indirect method, a gain from the sale of property, plant, and equipment is deducted from net income in the operating activities section to adjust for the fact that the gain increased net income but did not involve cash inflow from operating activities.

A Gain from the Sale of a Company's Property, Plant