A gain on the sale of a plant assets should be included in which of the following sections of a statement of cash flows prepared using the indirect method?
A) Investing activities
B) Operating activities
C) Financing activities
D) Non-cash investing and financing activities

Question

Quizplus · Accepted Answer

In the indirect method, gains on the sale of plant assets are subtracted from net income in the operating activities section because they are non-cash items that were included in net income.

A Gain on the Sale of a Plant Assets Should