A gain on the sale of plant assets in the ordinary course of business should be presented in a statement of cash flows as a (an)
A) Source and use of cash
B) Use of cash
C) Addition to income from continuing operations
D) Deduction from income from continuing operations

Question

Quizplus · Accepted Answer

A gain on the sale of plant assets is deducted from income from continuing operations in the operating activities section of the statement of cash flows because it is a non-cash item that was included in net income.

A Gain on the Sale of Plant Assets in the Ordinary