A gain on the sale of a fixed asset is reported on the statement of cash flows ________.
A)as a deduction to net income under operating activities for the indirect method
B)as a deduction to the cash proceeds received from the sale of fixed assets under investing activities
C)as a noncash transaction
D)as a cash inflow under investing activities

Question

Quizplus · Accepted Answer

Gains on the sale of fixed assets are deducted from net income in the operating activities section when using the indirect method, as they are included in net income but do not affect cash flow from operating activities.

A Gain on the Sale of a Fixed Asset Is