Where is theThe gain resulting from the sale of equipment shown when using the indirect method to prepare the statement of cash flows is reported in the statement?:
A) In the operating section as a deduction.
B) In the investing section as a deduction.
C) In the operating section as an addition.
D) In the investing section as an addition.

Question

Quizplus · Accepted Answer

If the asset is sold for less than book value,the loss decreases net income.Since losses decrease net income,losses are added back to net income to determine net cash flow from operating activities.
losses are added back
Inserted missing word.JMF
losses are added back
Inserted missing word.JMF

Where Is TheThe Gain Resulting from the Sale of Equipment