There was a gain on the sale of investment property. How would this affect the Statement of Cash Flows operations section under the indirect method?

Question

Quizplus · Accepted Answer

Gains on the sale of investment property are added back to net income in the operations section of the Statement of Cash Flows under the indirect method because these gains are considered non-cash items that increased net income but did not involve an actual cash transaction in the operating activities.

There Was a Gain on the Sale of Investment Property