For each of the following activities that may take place during the accounting period, indicate the effect a-g on the statement of cash flows prepared using the indirect method.Choices may be selected as the answer for more than one question.
-gain on sale of investments
A)increase cash from operating activities
B)decrease cash from operating activities
C)increase cash from investing activities
D)decrease cash from investing activities
E)increase cash from financing activities
F)decrease cash from financing activities
G)noncash investing and financing supplement

Question

Quizplus · Accepted Answer

A gain on sale of investments is subtracted from net income in the operating activities section when using the indirect method, as it is a non-cash item that increased net income.

For Each of the Following Activities That May Take Place