Using the indirect method, the main types of plant asset transactions that appear on the Statement of Cash Flows in operating and investing activities are:

Question

Quizplus · Accepted Answer

The indirect method adjusts net income for non-cash expenses such as depreciation, and includes changes in plant asset accounts like acquisitions and sales in investing activities. Therefore, the main types of plant asset transactions that appear on the Statement of Cash Flows in operating and investing activities are acquisitions, sales, and depreciation.

Using the Indirect Method, the Main Types of Plant Asset