Fizzzle Inc.sold a piece of equipment during the period for $230,000 and recorded a gain of $45,000 on the sale.How should this gain be treated when preparing the operating activities section of the statement of cash flows using the indirect method?
A) A sale of equipment is a investing activity, the transaction will not affect the operating activities section.
B) The gain is added back to net income in the operating activities section.
C) The gain is subtracted from net income in the operating activities section.
D) The entire sales price is subtracted from net income in the operating activities section.
Correct Answer:
Verified
Q22: A cash inflow from financing activities includes:
A)
Q23: Kraco Corporation reported 2010 net income of
Q27: Adophus,Inc.'s 2010 income statement reported total revenues
Q34: Which of the following would not be
Q35: Academic research has found that market rates
Q36: Which of the following is an approximation
Q40: All of the following are firms that
Q42: Cash flows from _ activities will normally
Q46: Krenshaw Company reported total sales revenue of
Q54: _ activities relate to the normal operations
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents