When using the indirect method, the gain from selling a long-term investment is recognized in which of the following?
A) In the operating activity section and the investing activity section of the statement of cash flows.
B) In the financing activity section of the statement of cash flows.
C) In the noncash investing or financing activity supplemental section of the statement of cash flows.
D) Gains are not recognized in the statement of cash flows under the indirect method.

Question

Quizplus · Accepted Answer

The gain from selling a long-term investment is deducted from net income in the operating activities section and the cash received is shown in the investing activities section.

When Using the Indirect Method, the Gain from Selling a Long-Term