On an indirect method statement of cash flows,a gain on the sale of capital assets is:
A) reflected in the investing activities section
B) reflected in the financing activities section
C) added to net income
D) deducted from net income

Question

Quizplus · Accepted Answer

In the indirect method of cash flows, a gain on the sale of capital assets is deducted from net income in the operating activities section because it is a non-cash item that was included in net income.

On an Indirect Method Statement of Cash Flows,a Gain on the Sale