In a statement of cash flows prepared by the indirect method, which of the following events would be added to net income?
A)receipt of dividends on an available-for-sale investment
B)equity-method income from an investment in excess of dividends
C)proceeds from the sale of an available-for-sale investment
D)loss on the sale of plant assets

Question

Quizplus · Accepted Answer

A loss on the sale of plant assets is added back to net income in the operating activities section of the cash flow statement because it is a non-cash expense that reduced net income.

In a Statement of Cash Flows Prepared by the Indirect