Gains on the sale of land are shown as net income adjustments in the operating section of a statement of cash flows prepared on the direct basis.

Question

Quizplus · Accepted Answer

Gains on the sale of land are not shown in the operating section of a statement of cash flows prepared on the direct basis; they are adjusted for in the investing activities section, as they are considered investing activities, not operating activities.

Gains on the Sale of Land Are Shown as Net