When a company uses the direct method to present the statement of cash flows,cash received from the sale of a long-term asset increases the amount of net cash provided by investing activities.

Question

Quizplus · Accepted Answer

When using the direct method for the statement of cash flows, cash received from the sale of a long-term asset is reported under the investing activities section. Therefore, it increases the net cash provided by investing activities.

When a Company Uses the Direct Method to Present the Statement