Because the cash received from the sale of long-term assets is reported in the investing activities section of the statement of cash flows,any gain or loss is ignored when reporting the cash flow from operating activities under the direct method.

Question

Quizplus · Accepted Answer

The cash received from the sale of long-term assets is reported in the investing activities section, and any gain or loss is not considered when reporting the cash flow from operating activities under the direct method.

Because the Cash Received from the Sale of Long-Term Assets