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
E)None of these answers is correct.

Question

Quizplus · Accepted Answer

In the indirect method, a gain on the sale of plant assets is deducted from net income in the operating activities section because it is a non-cash item that was included in net income.

A Gain on the Sale of a Plant Assets Should