On an indirect method statement of cash flows, a gain on the sale of plant assets is:
A)reported in the financing activities section.
B)added to net income.
C)reported in the investing activities section.
D)deducted from net income.

Question

Quizplus · Accepted Answer

A gain on the sale of plant assets is deducted from net income in the operating activities section because it is a non-cash item that increased net income but did not affect cash flow from operating activities.

On an Indirect Method Statement of Cash Flows, a Gain