When using the indirect method of preparing a statement of cash flows, which of the following items would need to be deducted from net income in order to reconcile to cash provided by operating activities?

Question

Quizplus · Accepted Answer

Gains on the sale of property, plant, and equipment are deducted from net income because they are non-cash items that increase net income but do not affect cash flow from operating activities.

When Using the Indirect Method of Preparing a Statement of Cash