The sale of a long-term asset is reported on the statement of cash flows as an increase to cash from investing activities.The increase is equal to the cost of the asset.

Question

Quizplus · Accepted Answer

The increase is equal to the proceeds from the sale of the asset, not the cost of the asset. The difference between the book value of the asset and the sale proceeds is reported as a gain or loss in the income statement.

The Sale of a Long-Term Asset Is Reported on the Statement