Under the indirect method of preparing a statement of cash flows, cash disbursed for the acquisition of a plant asset is:
A)subtracted in the operating activities section.
B)subtracted in the investing activities section.
C)added in the investing activities section.
D)added in the financing activities section.

Question

Quizplus · Accepted Answer

According to the indirect method, cash disbursed for the acquisition of a plant asset is considered an investing activity and should be subtracted from the cash flow from investing activities section.

Under the Indirect Method of Preparing a Statement of Cash