On the statement of cash flows, a $5,000 gain on the sale of investments would be:
A)a decrease in the Investing section.
B)an increase in the Financing section.
C)a decrease in the Operating section.
D)an increase in the Investing section.

Question

Quizplus · Accepted Answer

Gains on the sale of investments are adjustments in the Operating section of the statement of cash flows to reconcile net income to net cash provided by operating activities, as they are non-cash income that increased net income but did not affect cash.

On the Statement of Cash Flows, a $5,000 Gain on the Sale