When using the indirect method,the gain from selling a long-term investment is recognized in which of the following?
A)In the Operating Activities and Investing Activities sections of the statement of cash flows
B)In the Financing Activities section of the statement of cash flows
C)In the noncash Investing or Financing Activities supplemental section of the statement of cash flows
D)Gains are not recognized in the statement of cash flows under the indirect method

Question

Quizplus · Accepted Answer

The gain from selling a long-term investment is adjusted out of net income in the Operating Activities section and the cash received is shown in the Investing Activities section.

When Using the Indirect Method,the Gain from Selling a Long-Term